Correlation Between CeoTronics and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both CeoTronics and MAVEN WIRELESS 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 CeoTronics and MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on CeoTronics and MAVEN WIRELESS 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 CeoTronics with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and MAVEN WIRELESS.
Diversification Opportunities for CeoTronics and MAVEN WIRELESS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CeoTronics and MAVEN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and CeoTronics 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 CeoTronics AG are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of CeoTronics i.e., CeoTronics and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between CeoTronics and MAVEN WIRELESS
Assuming the 90 days trading horizon CeoTronics AG is expected to generate 0.85 times more return on investment than MAVEN WIRELESS. However, CeoTronics AG is 1.18 times less risky than MAVEN WIRELESS. It trades about 0.08 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.01 per unit of risk. If you would invest 314.00 in CeoTronics AG on November 8, 2024 and sell it today you would earn a total of 276.00 from holding CeoTronics AG or generate 87.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.44% |
| Values | Daily Returns |
CeoTronics AG vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| CeoTronics AG |
| MAVEN WIRELESS SWEDEN |
CeoTronics and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and MAVEN WIRELESS
The main advantage of trading using opposite CeoTronics and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| CeoTronics vs. MONEYSUPERMARKET | CeoTronics vs. Cal Maine Foods | CeoTronics vs. Lifeway Foods | CeoTronics vs. Fevertree Drinks PLC |
| MAVEN WIRELESS vs. CEOTRONICS | MAVEN WIRELESS vs. DATATEC LTD 2 | MAVEN WIRELESS vs. SIEM OFFSHORE NEW | MAVEN WIRELESS vs. RCI Hospitality Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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