Correlation Between 4Mass SA and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both 4Mass SA and Carlson Investments 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 4Mass SA and Carlson Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Mass SA and Carlson Investments SA, you can compare the effects of market volatilities on 4Mass SA and Carlson Investments 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 4Mass SA with a short position of Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Mass SA and Carlson Investments.
Diversification Opportunities for 4Mass SA and Carlson Investments
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 4Mass and Carlson is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding 4Mass SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments and 4Mass SA 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 4Mass SA are associated (or correlated) with Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of 4Mass SA i.e., 4Mass SA and Carlson Investments go up and down completely randomly.
Pair Corralation between 4Mass SA and Carlson Investments
Assuming the 90 days trading horizon 4Mass SA is expected to generate 0.6 times more return on investment than Carlson Investments. However, 4Mass SA is 1.68 times less risky than Carlson Investments. It trades about 0.09 of its potential returns per unit of risk. Carlson Investments SA is currently generating about -0.07 per unit of risk. If you would invest 229.00 in 4Mass SA on August 28, 2024 and sell it today you would earn a total of 415.00 from holding 4Mass SA or generate 181.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Mass SA vs. Carlson Investments SA
Performance |
| Timeline |
| 4Mass SA |
| Carlson Investments |
4Mass SA and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Mass SA and Carlson Investments
The main advantage of trading using opposite 4Mass SA and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Mass SA position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| 4Mass SA vs. Asseco Business Solutions | 4Mass SA vs. Detalion Games SA | 4Mass SA vs. Asseco South Eastern | 4Mass SA vs. Movie Games SA |
| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Asseco South Eastern |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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