Correlation Between Magna Terra and Accord Financial

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Can any of the company-specific risk be diversified away by investing in both Magna Terra and Accord 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 Magna Terra and Accord Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Terra Minerals and Accord Financial Corp, you can compare the effects of market volatilities on Magna Terra and Accord 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 Magna Terra with a short position of Accord Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Terra and Accord Financial.

Diversification Opportunities for Magna Terra and Accord Financial

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Magna and Accord is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Magna Terra Minerals and Accord Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accord Financial Corp and Magna Terra 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 Magna Terra Minerals are associated (or correlated) with Accord Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accord Financial Corp has no effect on the direction of Magna Terra i.e., Magna Terra and Accord Financial go up and down completely randomly.

Pair Corralation between Magna Terra and Accord Financial

Assuming the 90 days horizon Magna Terra Minerals is expected to generate 0.88 times more return on investment than Accord Financial. However, Magna Terra Minerals is 1.13 times less risky than Accord Financial. It trades about 0.17 of its potential returns per unit of risk. Accord Financial Corp is currently generating about -0.11 per unit of risk. If you would invest  10.00  in Magna Terra Minerals on September 9, 2025 and sell it today you would earn a total of  6.00  from holding Magna Terra Minerals or generate 60.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.46%
ValuesDaily Returns

Magna Terra Minerals  vs.  Accord Financial Corp

 Performance 
       Timeline  
Magna Terra Minerals 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Magna Terra Minerals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Magna Terra showed solid returns over the last few months and may actually be approaching a breakup point.
Accord Financial Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Accord Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Magna Terra and Accord Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Magna Terra and Accord Financial

The main advantage of trading using opposite Magna Terra and Accord Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Terra position performs unexpectedly, Accord 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 Accord Financial will offset losses from the drop in Accord Financial's long position.
The idea behind Magna Terra Minerals and Accord Financial Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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