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 30 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
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BankInvest and MapsPeople is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 30 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 30 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 is expected to generate 2.31 times less return on investment than MapsPeople. But when comparing it to its historical volatility, BankInvest Optima 30 is 19.39 times less risky than MapsPeople. It trades about 0.17 of its potential returns per unit of risk. MapsPeople AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 161.00 in MapsPeople AS on August 29, 2024 and sell it today you would lose (12.00) from holding MapsPeople AS or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankInvest Optima 30 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. MapsPeople AS | BankInvest Optima vs. Penneo AS | BankInvest Optima vs. Dataproces Group AS | BankInvest Optima vs. Orderyoyo AS |
| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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