Correlation Between Mogo and Appen
Can any of the company-specific risk be diversified away by investing in both Mogo and Appen 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 Mogo and Appen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mogo Inc and Appen Limited, you can compare the effects of market volatilities on Mogo and Appen 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 Mogo with a short position of Appen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mogo and Appen.
Diversification Opportunities for Mogo and Appen
Significant diversification
The 3 months correlation between Mogo and Appen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mogo Inc and Appen Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appen Limited and Mogo 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 Mogo Inc are associated (or correlated) with Appen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appen Limited has no effect on the direction of Mogo i.e., Mogo and Appen go up and down completely randomly.
Pair Corralation between Mogo and Appen
Given the investment horizon of 90 days Mogo Inc is expected to under-perform the Appen. But the stock apears to be less risky and, when comparing its historical volatility, Mogo Inc is 3.01 times less risky than Appen. The stock trades about -0.17 of its potential returns per unit of risk. The Appen Limited is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Appen Limited on March 7, 2024 and sell it today you would lose (2.00) from holding Appen Limited or give up 10.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mogo Inc vs. Appen Limited
Performance |
Timeline |
Mogo Inc |
Appen Limited |
Mogo and Appen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mogo and Appen
The main advantage of trading using opposite Mogo and Appen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mogo position performs unexpectedly, Appen 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 Appen will offset losses from the drop in Appen's long position.Mogo vs. Appen Limited | Mogo vs. Value Exchange International | Mogo vs. Appen Limited | Mogo vs. Deveron Corp |
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Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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