Correlation Between MFF Capital and Argo Investments
Can any of the company-specific risk be diversified away by investing in both MFF Capital and Argo Investments 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 MFF Capital and Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFF Capital Investments and Argo Investments, you can compare the effects of market volatilities on MFF Capital and Argo Investments 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 MFF Capital with a short position of Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and Argo Investments.
Diversification Opportunities for MFF Capital and Argo Investments
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFF and Argo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments and MFF Capital 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 MFF Capital Investments are associated (or correlated) with Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of MFF Capital i.e., MFF Capital and Argo Investments go up and down completely randomly.
Pair Corralation between MFF Capital and Argo Investments
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 1.84 times more return on investment than Argo Investments. However, MFF Capital is 1.84 times more volatile than Argo Investments. It trades about 0.11 of its potential returns per unit of risk. Argo Investments is currently generating about -0.06 per unit of risk. If you would invest 473.00 in MFF Capital Investments on October 10, 2025 and sell it today you would earn a total of 28.00 from holding MFF Capital Investments or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFF Capital Investments vs. Argo Investments
Performance |
| Timeline |
| MFF Capital Investments |
| Argo Investments |
MFF Capital and Argo Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFF Capital and Argo Investments
The main advantage of trading using opposite MFF Capital and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital position performs unexpectedly, Argo Investments 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 Argo Investments will offset losses from the drop in Argo Investments' long position.| MFF Capital vs. Healthco Healthcare and | MFF Capital vs. Regis Healthcare | MFF Capital vs. Singular Health Group | MFF Capital vs. Marimaca Copper Corp |
| Argo Investments vs. DMC Mining | Argo Investments vs. Seven West Media | Argo Investments vs. Golden Dragon Mining | Argo Investments vs. Evolution Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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