Correlation Between Acuvi AB and MTI Investment
Can any of the company-specific risk be diversified away by investing in both Acuvi AB and MTI Investment 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 Acuvi AB and MTI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acuvi AB and MTI Investment SE, you can compare the effects of market volatilities on Acuvi AB and MTI Investment 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 Acuvi AB with a short position of MTI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acuvi AB and MTI Investment.
Diversification Opportunities for Acuvi AB and MTI Investment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acuvi and MTI is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Acuvi AB and MTI Investment SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Investment SE and Acuvi AB 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 Acuvi AB are associated (or correlated) with MTI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Investment SE has no effect on the direction of Acuvi AB i.e., Acuvi AB and MTI Investment go up and down completely randomly.
Pair Corralation between Acuvi AB and MTI Investment
Assuming the 90 days trading horizon Acuvi AB is expected to generate 0.84 times more return on investment than MTI Investment. However, Acuvi AB is 1.19 times less risky than MTI Investment. It trades about 0.05 of its potential returns per unit of risk. MTI Investment SE is currently generating about -0.08 per unit of risk. If you would invest 1,390 in Acuvi AB on August 29, 2024 and sell it today you would earn a total of 170.00 from holding Acuvi AB or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acuvi AB vs. MTI Investment SE
Performance |
| Timeline |
| Acuvi AB |
| MTI Investment SE |
Acuvi AB and MTI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acuvi AB and MTI Investment
The main advantage of trading using opposite Acuvi AB and MTI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acuvi AB position performs unexpectedly, MTI Investment 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 MTI Investment will offset losses from the drop in MTI Investment's long position.| Acuvi AB vs. MTI Investment SE | Acuvi AB vs. Lohilo Foods AB | Acuvi AB vs. Neola Medical AB | Acuvi AB vs. New Nordic Healthbrands |
| MTI Investment vs. Investor AB ser | MTI Investment vs. Investment AB Latour | MTI Investment vs. Industrivarden AB ser | MTI Investment vs. Tele2 AB |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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