Correlation Between Biztech Konsulting and Artifex Mundi
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and Artifex Mundi 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 Artifex Mundi 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 Artifex Mundi SA, you can compare the effects of market volatilities on Biztech Konsulting and Artifex Mundi 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 Artifex Mundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and Artifex Mundi.
Diversification Opportunities for Biztech Konsulting and Artifex Mundi
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biztech and Artifex is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and Artifex Mundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artifex Mundi 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 Artifex Mundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artifex Mundi SA has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and Artifex Mundi go up and down completely randomly.
Pair Corralation between Biztech Konsulting and Artifex Mundi
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to generate 1.22 times more return on investment than Artifex Mundi. However, Biztech Konsulting is 1.22 times more volatile than Artifex Mundi SA. It trades about 0.21 of its potential returns per unit of risk. Artifex Mundi SA is currently generating about -0.27 per unit of risk. If you would invest 14.00 in Biztech Konsulting SA on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Biztech Konsulting SA or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Biztech Konsulting SA vs. Artifex Mundi SA
Performance |
| Timeline |
| Biztech Konsulting |
| Artifex Mundi SA |
Biztech Konsulting and Artifex Mundi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and Artifex Mundi
The main advantage of trading using opposite Biztech Konsulting and Artifex Mundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, Artifex Mundi 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 Artifex Mundi will offset losses from the drop in Artifex Mundi's long position.| Biztech Konsulting vs. mBank SA | Biztech Konsulting vs. Medicalg | Biztech Konsulting vs. LSI Software SA | Biztech Konsulting vs. ING Bank lski |
| Artifex Mundi vs. Biztech Konsulting SA | Artifex Mundi vs. Globe Trade Centre | Artifex Mundi vs. New Tech Venture | Artifex Mundi vs. SOFTWARE MANSION SPOLKA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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