Correlation Between Granite 3x and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Granite 3x and Mediantechn 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 Granite 3x and Mediantechn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite 3x LVMH and Mediantechn, you can compare the effects of market volatilities on Granite 3x and Mediantechn 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 Granite 3x with a short position of Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite 3x and Mediantechn.
Diversification Opportunities for Granite 3x and Mediantechn
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Granite and Mediantechn is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Granite 3x LVMH and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn and Granite 3x 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 Granite 3x LVMH are associated (or correlated) with Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Granite 3x i.e., Granite 3x and Mediantechn go up and down completely randomly.
Pair Corralation between Granite 3x and Mediantechn
Assuming the 90 days trading horizon Granite 3x LVMH is expected to generate 1.22 times more return on investment than Mediantechn. However, Granite 3x is 1.22 times more volatile than Mediantechn. It trades about -0.14 of its potential returns per unit of risk. Mediantechn is currently generating about -0.18 per unit of risk. If you would invest 189.00 in Granite 3x LVMH on August 30, 2024 and sell it today you would lose (31.00) from holding Granite 3x LVMH or give up 16.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
Granite 3x LVMH vs. Mediantechn
Performance |
| Timeline |
| Granite 3x LVMH |
| Mediantechn |
Granite 3x and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite 3x and Mediantechn
The main advantage of trading using opposite Granite 3x and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite 3x position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Stoxx | Granite 3x vs. Amundi CAC 40 |
| Mediantechn vs. Kalray SA | Mediantechn vs. Biosynex | Mediantechn vs. Eurobio Scientific SA | Mediantechn vs. OSE Pharma SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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