Correlation Between SANOK RUBBER and Moncler SpA
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Moncler SpA 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 SANOK RUBBER and Moncler SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Moncler SpA, you can compare the effects of market volatilities on SANOK RUBBER and Moncler SpA 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 SANOK RUBBER with a short position of Moncler SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Moncler SpA.
Diversification Opportunities for SANOK RUBBER and Moncler SpA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SANOK and Moncler is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Moncler SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moncler SpA and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Moncler SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moncler SpA has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Moncler SpA go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Moncler SpA
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 1.28 times more return on investment than Moncler SpA. However, SANOK RUBBER is 1.28 times more volatile than Moncler SpA. It trades about 0.4 of its potential returns per unit of risk. Moncler SpA is currently generating about 0.08 per unit of risk. If you would invest 451.00 in SANOK RUBBER ZY on October 11, 2024 and sell it today you would earn a total of 62.00 from holding SANOK RUBBER ZY or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Moncler SpA
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Moncler SpA |
SANOK RUBBER and Moncler SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Moncler SpA
The main advantage of trading using opposite SANOK RUBBER and Moncler SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Moncler SpA 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 Moncler SpA will offset losses from the drop in Moncler SpA's long position.| SANOK RUBBER vs. Jacquet Metal Service | SANOK RUBBER vs. Lendlease Group | SANOK RUBBER vs. Perseus Mining Limited | SANOK RUBBER vs. Gladstone Investment |
| Moncler SpA vs. Virtu Financial | Moncler SpA vs. SANOK RUBBER ZY | Moncler SpA vs. CDN IMPERIAL BANK | Moncler SpA vs. Heidelberg Materials AG |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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