Correlation Between KOOL2PLAY and Martifer SGPS
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY and Martifer SGPS 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 KOOL2PLAY and Martifer SGPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and Martifer SGPS SA, you can compare the effects of market volatilities on KOOL2PLAY and Martifer SGPS 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 KOOL2PLAY with a short position of Martifer SGPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and Martifer SGPS.
Diversification Opportunities for KOOL2PLAY and Martifer SGPS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KOOL2PLAY and Martifer is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY and Martifer SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martifer SGPS SA and KOOL2PLAY 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 KOOL2PLAY SA ZY are associated (or correlated) with Martifer SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martifer SGPS SA has no effect on the direction of KOOL2PLAY i.e., KOOL2PLAY and Martifer SGPS go up and down completely randomly.
Pair Corralation between KOOL2PLAY and Martifer SGPS
Assuming the 90 days horizon KOOL2PLAY SA ZY is expected to under-perform the Martifer SGPS. In addition to that, KOOL2PLAY is 2.83 times more volatile than Martifer SGPS SA. It trades about -0.07 of its total potential returns per unit of risk. Martifer SGPS SA is currently generating about -0.02 per unit of volatility. If you would invest 173.00 in Martifer SGPS SA on October 8, 2024 and sell it today you would lose (1.00) from holding Martifer SGPS SA or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. Martifer SGPS SA
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| Martifer SGPS SA |
KOOL2PLAY and Martifer SGPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and Martifer SGPS
The main advantage of trading using opposite KOOL2PLAY and Martifer SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY position performs unexpectedly, Martifer SGPS 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 Martifer SGPS will offset losses from the drop in Martifer SGPS's long position.| KOOL2PLAY vs. STMICROELECTRONICS | KOOL2PLAY vs. CarsalesCom | KOOL2PLAY vs. Cars Inc | KOOL2PLAY vs. Grupo Carso SAB |
| Martifer SGPS vs. MELIA HOTELS | Martifer SGPS vs. Geely Automobile Holdings | Martifer SGPS vs. INTER CARS SA | Martifer SGPS vs. EIDESVIK OFFSHORE NK |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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