Correlation Between Musti Group and Cass Information
Can any of the company-specific risk be diversified away by investing in both Musti Group and Cass Information 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 Musti Group and Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Musti Group Oyj and Cass Information Systems, you can compare the effects of market volatilities on Musti Group and Cass Information 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 Musti Group with a short position of Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Musti Group and Cass Information.
Diversification Opportunities for Musti Group and Cass Information
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Musti and Cass is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Musti Group Oyj and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and Musti Group 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 Musti Group Oyj are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Musti Group i.e., Musti Group and Cass Information go up and down completely randomly.
Pair Corralation between Musti Group and Cass Information
Assuming the 90 days horizon Musti Group Oyj is expected to generate 0.67 times more return on investment than Cass Information. However, Musti Group Oyj is 1.5 times less risky than Cass Information. It trades about 0.02 of its potential returns per unit of risk. Cass Information Systems is currently generating about -0.1 per unit of risk. If you would invest 1,990 in Musti Group Oyj on October 22, 2024 and sell it today you would earn a total of 6.00 from holding Musti Group Oyj or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Musti Group Oyj vs. Cass Information Systems
Performance |
| Timeline |
| Musti Group Oyj |
| Cass Information Systems |
Musti Group and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Musti Group and Cass Information
The main advantage of trading using opposite Musti Group and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Musti Group position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Musti Group vs. Kingdee International Software | Musti Group vs. USU Software AG | Musti Group vs. Northern Data AG | Musti Group vs. Guidewire Software |
| Cass Information vs. Rocket Internet SE | Cass Information vs. UNIVERSAL MUSIC GROUP | Cass Information vs. Air Transport Services | Cass Information vs. Fortescue Metals Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |