Correlation Between Checkin Group and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both Checkin Group 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 Checkin Group and Maven Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Checkin Group AB and Maven Wireless Sweden, you can compare the effects of market volatilities on Checkin Group 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 Checkin Group with a short position of Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Checkin Group and Maven Wireless.
Diversification Opportunities for Checkin Group and Maven Wireless
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Checkin and Maven is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Checkin Group AB 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 Checkin Group 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 Checkin Group AB 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 Checkin Group i.e., Checkin Group and Maven Wireless go up and down completely randomly.
Pair Corralation between Checkin Group and Maven Wireless
Assuming the 90 days trading horizon Checkin Group AB is expected to under-perform the Maven Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Checkin Group AB is 1.25 times less risky than Maven Wireless. The stock trades about -0.22 of its potential returns per unit of risk. The Maven Wireless Sweden is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Maven Wireless Sweden on October 25, 2024 and sell it today you would earn a total of 50.00 from holding Maven Wireless Sweden or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Checkin Group AB vs. Maven Wireless Sweden
Performance |
| Timeline |
| Checkin Group AB |
| Maven Wireless Sweden |
Checkin Group and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Checkin Group and Maven Wireless
The main advantage of trading using opposite Checkin Group and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Checkin Group 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' long position.| Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
| Maven Wireless vs. Checkin Group AB | Maven Wireless vs. Midsummer AB | Maven Wireless vs. Hexatronic Group AB | Maven Wireless vs. Cint Group AB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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