Correlation Between Currenc Group and Medallion Financial
Can any of the company-specific risk be diversified away by investing in both Currenc Group and Medallion Financial 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 Currenc Group and Medallion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Currenc Group Ordinary and Medallion Financial Corp, you can compare the effects of market volatilities on Currenc Group and Medallion Financial 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 Currenc Group with a short position of Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Currenc Group and Medallion Financial.
Diversification Opportunities for Currenc Group and Medallion Financial
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Currenc and Medallion is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Currenc Group Ordinary and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial Corp and Currenc Group 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 Currenc Group Ordinary are associated (or correlated) with Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Currenc Group i.e., Currenc Group and Medallion Financial go up and down completely randomly.
Pair Corralation between Currenc Group and Medallion Financial
Given the investment horizon of 90 days Currenc Group Ordinary is expected to generate 4.12 times more return on investment than Medallion Financial. However, Currenc Group is 4.12 times more volatile than Medallion Financial Corp. It trades about 0.12 of its potential returns per unit of risk. Medallion Financial Corp is currently generating about -0.03 per unit of risk. If you would invest 186.00 in Currenc Group Ordinary on August 21, 2025 and sell it today you would earn a total of 94.00 from holding Currenc Group Ordinary or generate 50.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Currenc Group Ordinary vs. Medallion Financial Corp
Performance |
| Timeline |
| Currenc Group Ordinary |
| Medallion Financial Corp |
Currenc Group and Medallion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Currenc Group and Medallion Financial
The main advantage of trading using opposite Currenc Group and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Currenc Group position performs unexpectedly, Medallion Financial 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 Medallion Financial will offset losses from the drop in Medallion Financial's long position.| Currenc Group vs. Consumer Portfolio Services | Currenc Group vs. Open Lending Corp | Currenc Group vs. CPI Card Group | Currenc Group vs. Streamex Corp |
| Medallion Financial vs. Yirendai | Medallion Financial vs. Finance of America | Medallion Financial vs. Open Lending Corp | Medallion Financial vs. Oportun Financial Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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