Correlation Between 24SEVENOFFICE GROUP and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP and MIE HOLDINGS 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 24SEVENOFFICE GROUP and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and MIE HOLDINGS, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP and MIE HOLDINGS 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 24SEVENOFFICE GROUP with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and MIE HOLDINGS.
Diversification Opportunities for 24SEVENOFFICE GROUP and MIE HOLDINGS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 24SEVENOFFICE and MIE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and 24SEVENOFFICE 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 24SEVENOFFICE GROUP AB are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and MIE HOLDINGS
Assuming the 90 days horizon 24SEVENOFFICE GROUP is expected to generate 10.77 times less return on investment than MIE HOLDINGS. But when comparing it to its historical volatility, 24SEVENOFFICE GROUP AB is 15.03 times less risky than MIE HOLDINGS. It trades about 0.09 of its potential returns per unit of risk. MIE HOLDINGS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.05 in MIE HOLDINGS on October 7, 2024 and sell it today you would earn a total of 0.00 from holding MIE HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. MIE HOLDINGS
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| MIE HOLDINGS |
24SEVENOFFICE GROUP and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and MIE HOLDINGS
The main advantage of trading using opposite 24SEVENOFFICE GROUP and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.| 24SEVENOFFICE GROUP vs. Salesforce | 24SEVENOFFICE GROUP vs. Rocket Internet SE | 24SEVENOFFICE GROUP vs. Superior Plus Corp | 24SEVENOFFICE GROUP vs. NMI Holdings |
| MIE HOLDINGS vs. X FAB Silicon Foundries | MIE HOLDINGS vs. KENEDIX OFFICE INV | MIE HOLDINGS vs. OFFICE DEPOT | MIE HOLDINGS vs. Corporate Office Properties |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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