Correlation Between Aptamer Group and Mitchells Butlers
Can any of the company-specific risk be diversified away by investing in both Aptamer Group and Mitchells Butlers 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 Aptamer Group and Mitchells Butlers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptamer Group PLC and Mitchells Butlers PLC, you can compare the effects of market volatilities on Aptamer Group and Mitchells Butlers 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 Aptamer Group with a short position of Mitchells Butlers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Mitchells Butlers.
Diversification Opportunities for Aptamer Group and Mitchells Butlers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aptamer and Mitchells is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and Mitchells Butlers PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitchells Butlers PLC and Aptamer Group 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 Aptamer Group PLC are associated (or correlated) with Mitchells Butlers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitchells Butlers PLC has no effect on the direction of Aptamer Group i.e., Aptamer Group and Mitchells Butlers go up and down completely randomly.
Pair Corralation between Aptamer Group and Mitchells Butlers
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 2.58 times more return on investment than Mitchells Butlers. However, Aptamer Group is 2.58 times more volatile than Mitchells Butlers PLC. It trades about 0.17 of its potential returns per unit of risk. Mitchells Butlers PLC is currently generating about -0.15 per unit of risk. If you would invest 37.00 in Aptamer Group PLC on November 2, 2024 and sell it today you would earn a total of 6.00 from holding Aptamer Group PLC or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptamer Group PLC vs. Mitchells Butlers PLC
Performance |
| Timeline |
| Aptamer Group PLC |
| Mitchells Butlers PLC |
Aptamer Group and Mitchells Butlers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and Mitchells Butlers
The main advantage of trading using opposite Aptamer Group and Mitchells Butlers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group position performs unexpectedly, Mitchells Butlers 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 Mitchells Butlers will offset losses from the drop in Mitchells Butlers' long position.| Aptamer Group vs. Fevertree Drinks Plc | Aptamer Group vs. Ebro Foods | Aptamer Group vs. Fresenius Medical Care | Aptamer Group vs. Ashtead Technology Holdings |
| Mitchells Butlers vs. Melia Hotels | Mitchells Butlers vs. PPHE Hotel Group | Mitchells Butlers vs. Compagnie Plastic Omnium | Mitchells Butlers vs. Scandic Hotels Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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