Correlation Between System and Maniker FG
Can any of the company-specific risk be diversified away by investing in both System and Maniker FG 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 System and Maniker FG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between System and Application and Maniker FG Co, you can compare the effects of market volatilities on System and Maniker FG 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 System with a short position of Maniker FG. Check out your portfolio center. Please also check ongoing floating volatility patterns of System and Maniker FG.
Diversification Opportunities for System and Maniker FG
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between System and Maniker is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding System and Application and Maniker FG Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maniker FG and System 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 System and Application are associated (or correlated) with Maniker FG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maniker FG has no effect on the direction of System i.e., System and Maniker FG go up and down completely randomly.
Pair Corralation between System and Maniker FG
Assuming the 90 days trading horizon System and Application is expected to generate 1.63 times more return on investment than Maniker FG. However, System is 1.63 times more volatile than Maniker FG Co. It trades about 0.11 of its potential returns per unit of risk. Maniker FG Co is currently generating about -0.07 per unit of risk. If you would invest 141,900 in System and Application on August 28, 2024 and sell it today you would earn a total of 8,000 from holding System and Application or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
System and Application vs. Maniker FG Co
Performance |
| Timeline |
| System and Application |
| Maniker FG |
System and Maniker FG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with System and Maniker FG
The main advantage of trading using opposite System and Maniker FG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if System position performs unexpectedly, Maniker FG 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 Maniker FG will offset losses from the drop in Maniker FG's long position.| System vs. Lake Materials Co | System vs. Top Material Co | System vs. TOPMATERIAL LTD | System vs. Lotte Data Communication |
| Maniker FG vs. System and Application | Maniker FG vs. CKH Food Health | Maniker FG vs. Samlip General Foods | Maniker FG vs. Daou Data 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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