Correlation Between Adyen NV and Ming Le
Can any of the company-specific risk be diversified away by investing in both Adyen NV and Ming Le 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 Adyen NV and Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adyen NV and Ming Le Sports, you can compare the effects of market volatilities on Adyen NV and Ming Le 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 Adyen NV with a short position of Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adyen NV and Ming Le.
Diversification Opportunities for Adyen NV and Ming Le
Excellent diversification
The 3 months correlation between Adyen and Ming is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Adyen NV and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports and Adyen NV 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 Adyen NV are associated (or correlated) with Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of Adyen NV i.e., Adyen NV and Ming Le go up and down completely randomly.
Pair Corralation between Adyen NV and Ming Le
Assuming the 90 days horizon Adyen NV is expected to generate 1.73 times more return on investment than Ming Le. However, Adyen NV is 1.73 times more volatile than Ming Le Sports. It trades about 0.02 of its potential returns per unit of risk. Ming Le Sports is currently generating about 0.03 per unit of risk. If you would invest 134,000 in Adyen NV on September 1, 2024 and sell it today you would earn a total of 3,640 from holding Adyen NV or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Adyen NV vs. Ming Le Sports
Performance |
| Timeline |
| Adyen NV |
| Ming Le Sports |
Adyen NV and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adyen NV and Ming Le
The main advantage of trading using opposite Adyen NV and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adyen NV position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| Adyen NV vs. VIRGIN WINES UK | Adyen NV vs. AOI Electronics Co | Adyen NV vs. VIVA WINE GROUP | Adyen NV vs. SIMS METAL MGT |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |