Correlation Between Acticor Biotech and Mauna Kea
Can any of the company-specific risk be diversified away by investing in both Acticor Biotech and Mauna Kea 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 Acticor Biotech and Mauna Kea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acticor Biotech SAS and Mauna Kea Technologies, you can compare the effects of market volatilities on Acticor Biotech and Mauna Kea 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 Acticor Biotech with a short position of Mauna Kea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acticor Biotech and Mauna Kea.
Diversification Opportunities for Acticor Biotech and Mauna Kea
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acticor and Mauna is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Acticor Biotech SAS and Mauna Kea Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauna Kea Technologies and Acticor Biotech 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 Acticor Biotech SAS are associated (or correlated) with Mauna Kea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauna Kea Technologies has no effect on the direction of Acticor Biotech i.e., Acticor Biotech and Mauna Kea go up and down completely randomly.
Pair Corralation between Acticor Biotech and Mauna Kea
Assuming the 90 days trading horizon Acticor Biotech SAS is expected to generate 2.37 times more return on investment than Mauna Kea. However, Acticor Biotech is 2.37 times more volatile than Mauna Kea Technologies. It trades about -0.1 of its potential returns per unit of risk. Mauna Kea Technologies is currently generating about -0.38 per unit of risk. If you would invest 45.00 in Acticor Biotech SAS on September 4, 2024 and sell it today you would lose (16.00) from holding Acticor Biotech SAS or give up 35.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acticor Biotech SAS vs. Mauna Kea Technologies
Performance |
| Timeline |
| Acticor Biotech SAS |
| Mauna Kea Technologies |
Acticor Biotech and Mauna Kea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acticor Biotech and Mauna Kea
The main advantage of trading using opposite Acticor Biotech and Mauna Kea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acticor Biotech position performs unexpectedly, Mauna Kea 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 Mauna Kea will offset losses from the drop in Mauna Kea's long position.| Acticor Biotech vs. Mauna Kea Technologies | Acticor Biotech vs. Innelec Multimedia | Acticor Biotech vs. Axway Software | Acticor Biotech vs. Fill Up Media |
| Mauna Kea vs. LVMH Mot Hennessy | Mauna Kea vs. LOreal SA | Mauna Kea vs. Hermes International SCA | Mauna Kea vs. Manitou BF SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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