Correlation Between Streamwide and Making Science
Can any of the company-specific risk be diversified away by investing in both Streamwide and Making Science 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 Streamwide and Making Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Streamwide and Making Science Group, you can compare the effects of market volatilities on Streamwide and Making Science 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 Streamwide with a short position of Making Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Streamwide and Making Science.
Diversification Opportunities for Streamwide and Making Science
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Streamwide and Making is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Streamwide and Making Science Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Making Science Group and Streamwide 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 Streamwide are associated (or correlated) with Making Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Making Science Group has no effect on the direction of Streamwide i.e., Streamwide and Making Science go up and down completely randomly.
Pair Corralation between Streamwide and Making Science
Assuming the 90 days trading horizon Streamwide is expected to under-perform the Making Science. In addition to that, Streamwide is 2.71 times more volatile than Making Science Group. It trades about 0.0 of its total potential returns per unit of risk. Making Science Group is currently generating about 0.21 per unit of volatility. If you would invest 900.00 in Making Science Group on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Making Science Group or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Streamwide vs. Making Science Group
Performance |
| Timeline |
| Streamwide |
| Making Science Group |
Streamwide and Making Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Streamwide and Making Science
The main advantage of trading using opposite Streamwide and Making Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Streamwide position performs unexpectedly, Making Science 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 Making Science will offset losses from the drop in Making Science's long position.| Streamwide vs. Sartorius Stedim Biotech | Streamwide vs. Lectra SA | Streamwide vs. Teleperformance SE | Streamwide vs. Trigano SA |
| Making Science vs. Streamwide | Making Science vs. Claranova SE | Making Science vs. SA Catana Group | Making Science 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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