Correlation Between MASI AGRICOLA and AS Latvijas
Can any of the company-specific risk be diversified away by investing in both MASI AGRICOLA and AS Latvijas 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 MASI AGRICOLA and AS Latvijas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MASI AGRICOLA SPA and AS Latvijas balzams, you can compare the effects of market volatilities on MASI AGRICOLA and AS Latvijas 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 MASI AGRICOLA with a short position of AS Latvijas. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASI AGRICOLA and AS Latvijas.
Diversification Opportunities for MASI AGRICOLA and AS Latvijas
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASI and UM9 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MASI AGRICOLA SPA and AS Latvijas balzams in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AS Latvijas balzams and MASI AGRICOLA 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 MASI AGRICOLA SPA are associated (or correlated) with AS Latvijas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AS Latvijas balzams has no effect on the direction of MASI AGRICOLA i.e., MASI AGRICOLA and AS Latvijas go up and down completely randomly.
Pair Corralation between MASI AGRICOLA and AS Latvijas
If you would invest 885.00 in AS Latvijas balzams on December 9, 2024 and sell it today you would earn a total of 0.00 from holding AS Latvijas balzams or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MASI AGRICOLA SPA vs. AS Latvijas balzams
Performance |
| Timeline |
| MASI AGRICOLA SPA |
| AS Latvijas balzams |
MASI AGRICOLA and AS Latvijas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASI AGRICOLA and AS Latvijas
The main advantage of trading using opposite MASI AGRICOLA and AS Latvijas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASI AGRICOLA position performs unexpectedly, AS Latvijas 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 AS Latvijas will offset losses from the drop in AS Latvijas' long position.| MASI AGRICOLA vs. Sunny Optical Technology | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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