Correlation Between SYSTEMAIR and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both SYSTEMAIR and MYFAIR GOLD 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 SYSTEMAIR and MYFAIR GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SYSTEMAIR AB and MYFAIR GOLD P, you can compare the effects of market volatilities on SYSTEMAIR and MYFAIR GOLD 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 SYSTEMAIR with a short position of MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and MYFAIR GOLD.
Diversification Opportunities for SYSTEMAIR and MYFAIR GOLD
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SYSTEMAIR and MYFAIR is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P and SYSTEMAIR 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 SYSTEMAIR AB are associated (or correlated) with MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of SYSTEMAIR i.e., SYSTEMAIR and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between SYSTEMAIR and MYFAIR GOLD
Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 1.09 times more return on investment than MYFAIR GOLD. However, SYSTEMAIR is 1.09 times more volatile than MYFAIR GOLD P. It trades about 0.06 of its potential returns per unit of risk. MYFAIR GOLD P is currently generating about -0.01 per unit of risk. If you would invest 424.00 in SYSTEMAIR AB on November 6, 2024 and sell it today you would earn a total of 302.00 from holding SYSTEMAIR AB or generate 71.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SYSTEMAIR AB vs. MYFAIR GOLD P
Performance |
| Timeline |
| SYSTEMAIR AB |
| MYFAIR GOLD P |
SYSTEMAIR and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYSTEMAIR and MYFAIR GOLD
The main advantage of trading using opposite SYSTEMAIR and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSTEMAIR position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD's long position.| SYSTEMAIR vs. Lifeway Foods | SYSTEMAIR vs. United Natural Foods | SYSTEMAIR vs. FORTRESS BIOTECHPRFA 25 | SYSTEMAIR vs. Tyson Foods |
| MYFAIR GOLD vs. CompuGroup Medical SE | MYFAIR GOLD vs. Apollo Medical Holdings | MYFAIR GOLD vs. MEDICAL FACILITIES NEW | MYFAIR GOLD vs. Medical Properties Trust |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |