Correlation Between Malaga Financial and Anfield Capital

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Can any of the company-specific risk be diversified away by investing in both Malaga Financial and Anfield Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Malaga Financial and Anfield Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malaga Financial and Anfield Capital Diversified, you can compare the effects of market volatilities on Malaga Financial and Anfield Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Malaga Financial with a short position of Anfield Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and Anfield Capital.

Diversification Opportunities for Malaga Financial and Anfield Capital

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Malaga and Anfield is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and Anfield Capital Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Capital Dive and Malaga Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Malaga Financial are associated (or correlated) with Anfield Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Capital Dive has no effect on the direction of Malaga Financial i.e., Malaga Financial and Anfield Capital go up and down completely randomly.

Pair Corralation between Malaga Financial and Anfield Capital

Given the investment horizon of 90 days Malaga Financial is expected to under-perform the Anfield Capital. In addition to that, Malaga Financial is 1.24 times more volatile than Anfield Capital Diversified. It trades about -0.05 of its total potential returns per unit of risk. Anfield Capital Diversified is currently generating about 0.18 per unit of volatility. If you would invest  862.00  in Anfield Capital Diversified on January 25, 2024 and sell it today you would earn a total of  28.00  from holding Anfield Capital Diversified or generate 3.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Malaga Financial  vs.  Anfield Capital Diversified

 Performance 
       Timeline  
Malaga Financial 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Malaga Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Malaga Financial is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Anfield Capital Dive 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Capital Diversified are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Anfield Capital is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Malaga Financial and Anfield Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Malaga Financial and Anfield Capital

The main advantage of trading using opposite Malaga Financial and Anfield Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, Anfield Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anfield Capital will offset losses from the drop in Anfield Capital's long position.
The idea behind Malaga Financial and Anfield Capital Diversified pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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