Correlation Between As Commercial and Mytilineos
Can any of the company-specific risk be diversified away by investing in both As Commercial and Mytilineos 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 As Commercial and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between As Commercial Industrial and Mytilineos SA, you can compare the effects of market volatilities on As Commercial and Mytilineos 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 As Commercial with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and Mytilineos.
Diversification Opportunities for As Commercial and Mytilineos
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASCO and Mytilineos is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and As Commercial 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 As Commercial Industrial are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of As Commercial i.e., As Commercial and Mytilineos go up and down completely randomly.
Pair Corralation between As Commercial and Mytilineos
Assuming the 90 days trading horizon As Commercial Industrial is expected to generate 1.51 times more return on investment than Mytilineos. However, As Commercial is 1.51 times more volatile than Mytilineos SA. It trades about 0.39 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.11 per unit of risk. If you would invest 283.00 in As Commercial Industrial on October 20, 2024 and sell it today you would earn a total of 37.00 from holding As Commercial Industrial or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. Mytilineos SA
Performance |
| Timeline |
| As Commercial Industrial |
| Mytilineos SA |
As Commercial and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and Mytilineos
The main advantage of trading using opposite As Commercial and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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