Correlation Between Cass Information and Musti Group
Can any of the company-specific risk be diversified away by investing in both Cass Information and Musti Group 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 Cass Information and Musti Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Musti Group Oyj, you can compare the effects of market volatilities on Cass Information and Musti Group 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 Cass Information with a short position of Musti Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Musti Group.
Diversification Opportunities for Cass Information and Musti Group
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cass and Musti is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Musti Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Musti Group Oyj and Cass Information 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 Cass Information Systems are associated (or correlated) with Musti Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Musti Group Oyj has no effect on the direction of Cass Information i.e., Cass Information and Musti Group go up and down completely randomly.
Pair Corralation between Cass Information and Musti Group
Assuming the 90 days horizon Cass Information Systems is expected to generate 0.59 times more return on investment than Musti Group. However, Cass Information Systems is 1.71 times less risky than Musti Group. It trades about -0.08 of its potential returns per unit of risk. Musti Group Oyj is currently generating about -0.22 per unit of risk. If you would invest 4,309 in Cass Information Systems on September 13, 2024 and sell it today you would lose (89.00) from holding Cass Information Systems or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cass Information Systems vs. Musti Group Oyj
Performance |
| Timeline |
| Cass Information Systems |
| Musti Group Oyj |
Cass Information and Musti Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Musti Group
The main advantage of trading using opposite Cass Information and Musti Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, Musti Group 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 Musti Group will offset losses from the drop in Musti Group's long position.| Cass Information vs. Media and Games | Cass Information vs. SOLSTAD OFFSHORE NK | Cass Information vs. ANGLER GAMING PLC | Cass Information vs. WT OFFSHORE |
| Musti Group vs. Japan Post Insurance | Musti Group vs. Goosehead Insurance | Musti Group vs. ZURICH INSURANCE GROUP | Musti Group vs. Alaska Air Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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