Correlation Between BankInvest Optima and MapsPeople
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima and MapsPeople 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 BankInvest Optima and MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 10 and MapsPeople AS, you can compare the effects of market volatilities on BankInvest Optima and MapsPeople 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 BankInvest Optima with a short position of MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and MapsPeople.
Diversification Opportunities for BankInvest Optima and MapsPeople
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and MapsPeople is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 10 and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS and BankInvest Optima 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 BankInvest Optima 10 are associated (or correlated) with MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of BankInvest Optima i.e., BankInvest Optima and MapsPeople go up and down completely randomly.
Pair Corralation between BankInvest Optima and MapsPeople
Assuming the 90 days trading horizon BankInvest Optima 10 is expected to generate 0.05 times more return on investment than MapsPeople. However, BankInvest Optima 10 is 22.07 times less risky than MapsPeople. It trades about 0.24 of its potential returns per unit of risk. MapsPeople AS is currently generating about -0.02 per unit of risk. If you would invest 13,020 in BankInvest Optima 10 on August 29, 2024 and sell it today you would earn a total of 785.00 from holding BankInvest Optima 10 or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.28% |
| Values | Daily Returns |
BankInvest Optima 10 vs. MapsPeople AS
Performance |
| Timeline |
| BankInvest Optima |
| MapsPeople AS |
BankInvest Optima and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and MapsPeople
The main advantage of trading using opposite BankInvest Optima and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople's long position.| BankInvest Optima vs. PARKEN Sport Entertainment | BankInvest Optima vs. NTG Nordic Transport | BankInvest Optima vs. Nordfyns Bank AS | BankInvest Optima vs. BankIn Bredygt Klimaakt |
| MapsPeople vs. Penneo AS | MapsPeople vs. Orderyoyo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics AS |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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