Correlation Between MAVEN WIRELESS and MEBUKI FINANCIAL
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and MEBUKI FINANCIAL 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 MAVEN WIRELESS and MEBUKI FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and MEBUKI FINANCIAL GROUP, you can compare the effects of market volatilities on MAVEN WIRELESS and MEBUKI FINANCIAL 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 MAVEN WIRELESS with a short position of MEBUKI FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and MEBUKI FINANCIAL.
Diversification Opportunities for MAVEN WIRELESS and MEBUKI FINANCIAL
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAVEN and MEBUKI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and MEBUKI FINANCIAL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEBUKI FINANCIAL and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with MEBUKI FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEBUKI FINANCIAL has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and MEBUKI FINANCIAL go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and MEBUKI FINANCIAL
Assuming the 90 days horizon MAVEN WIRELESS is expected to generate 1.77 times less return on investment than MEBUKI FINANCIAL. In addition to that, MAVEN WIRELESS is 1.35 times more volatile than MEBUKI FINANCIAL GROUP. It trades about 0.03 of its total potential returns per unit of risk. MEBUKI FINANCIAL GROUP is currently generating about 0.06 per unit of volatility. If you would invest 282.00 in MEBUKI FINANCIAL GROUP on August 26, 2024 and sell it today you would earn a total of 112.00 from holding MEBUKI FINANCIAL GROUP or generate 39.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. MEBUKI FINANCIAL GROUP
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| MEBUKI FINANCIAL |
MAVEN WIRELESS and MEBUKI FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and MEBUKI FINANCIAL
The main advantage of trading using opposite MAVEN WIRELESS and MEBUKI FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, MEBUKI FINANCIAL 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 MEBUKI FINANCIAL will offset losses from the drop in MEBUKI FINANCIAL's long position.| MAVEN WIRELESS vs. T Mobile | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Nippon Telegraph and |
| MEBUKI FINANCIAL vs. WillScot Mobile Mini | MEBUKI FINANCIAL vs. Entravision Communications | MEBUKI FINANCIAL vs. Gamma Communications plc | MEBUKI FINANCIAL vs. MAVEN WIRELESS SWEDEN |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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