Correlation Between LIFE + and Musti Group
Can any of the company-specific risk be diversified away by investing in both LIFE + and Musti Group 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 LIFE + and Musti Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFE BANC SPLIT and Musti Group Oyj, you can compare the effects of market volatilities on LIFE + and Musti Group 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 LIFE + with a short position of Musti Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFE + and Musti Group.
Diversification Opportunities for LIFE + and Musti Group
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LIFE and Musti is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding LIFE BANC SPLIT and Musti Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Musti Group Oyj and LIFE + 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 LIFE BANC SPLIT are associated (or correlated) with Musti Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Musti Group Oyj has no effect on the direction of LIFE + i.e., LIFE + and Musti Group go up and down completely randomly.
Pair Corralation between LIFE + and Musti Group
Assuming the 90 days horizon LIFE BANC SPLIT is expected to generate 1.69 times more return on investment than Musti Group. However, LIFE + is 1.69 times more volatile than Musti Group Oyj. It trades about 0.12 of its potential returns per unit of risk. Musti Group Oyj is currently generating about -0.32 per unit of risk. If you would invest 544.00 in LIFE BANC SPLIT on September 13, 2024 and sell it today you would earn a total of 76.00 from holding LIFE BANC SPLIT or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFE BANC SPLIT vs. Musti Group Oyj
Performance |
| Timeline |
| LIFE BANC SPLIT |
| Musti Group Oyj |
LIFE + and Musti Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFE + and Musti Group
The main advantage of trading using opposite LIFE + and Musti Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFE + position performs unexpectedly, Musti Group 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 Musti Group will offset losses from the drop in Musti Group's long position.| LIFE + vs. CENTURIA OFFICE REIT | LIFE + vs. 24SEVENOFFICE GROUP AB | LIFE + vs. BORR DRILLING NEW | LIFE + vs. Pembina Pipeline Corp |
| Musti Group vs. Cass Information Systems | Musti Group vs. NorAm Drilling AS | Musti Group vs. Datang International Power | Musti Group vs. TELES Informationstechnologien AG |
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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