Correlation Between Biztech Konsulting and 4Mass SA
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and 4Mass SA 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 Biztech Konsulting and 4Mass SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and 4Mass SA, you can compare the effects of market volatilities on Biztech Konsulting and 4Mass SA 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 Biztech Konsulting with a short position of 4Mass SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and 4Mass SA.
Diversification Opportunities for Biztech Konsulting and 4Mass SA
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biztech and 4Mass is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and 4Mass SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Mass SA and Biztech Konsulting 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 Biztech Konsulting SA are associated (or correlated) with 4Mass SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Mass SA has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and 4Mass SA go up and down completely randomly.
Pair Corralation between Biztech Konsulting and 4Mass SA
Assuming the 90 days trading horizon Biztech Konsulting is expected to generate 2.45 times less return on investment than 4Mass SA. In addition to that, Biztech Konsulting is 1.58 times more volatile than 4Mass SA. It trades about 0.02 of its total potential returns per unit of risk. 4Mass SA is currently generating about 0.09 per unit of volatility. If you would invest 224.00 in 4Mass SA on September 14, 2024 and sell it today you would earn a total of 422.00 from holding 4Mass SA or generate 188.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.08% |
| Values | Daily Returns |
Biztech Konsulting SA vs. 4Mass SA
Performance |
| Timeline |
| Biztech Konsulting |
| 4Mass SA |
Biztech Konsulting and 4Mass SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and 4Mass SA
The main advantage of trading using opposite Biztech Konsulting and 4Mass SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, 4Mass SA 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 4Mass SA will offset losses from the drop in 4Mass SA's long position.| Biztech Konsulting vs. Mlk Foods Public | Biztech Konsulting vs. GreenX Metals | Biztech Konsulting vs. M Food SA | Biztech Konsulting vs. Movie Games SA |
| 4Mass SA vs. Creotech Instruments SA | 4Mass SA vs. ING Bank lski | 4Mass SA vs. Biztech Konsulting SA | 4Mass SA vs. LSI Software 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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