Correlation Between Clemondo Group and Mendus AB
Can any of the company-specific risk be diversified away by investing in both Clemondo Group and Mendus AB 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 Clemondo Group and Mendus AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clemondo Group AB and Mendus AB, you can compare the effects of market volatilities on Clemondo Group and Mendus AB 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 Clemondo Group with a short position of Mendus AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clemondo Group and Mendus AB.
Diversification Opportunities for Clemondo Group and Mendus AB
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clemondo and Mendus is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Clemondo Group AB and Mendus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mendus AB and Clemondo 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 Clemondo Group AB are associated (or correlated) with Mendus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mendus AB has no effect on the direction of Clemondo Group i.e., Clemondo Group and Mendus AB go up and down completely randomly.
Pair Corralation between Clemondo Group and Mendus AB
Assuming the 90 days trading horizon Clemondo Group AB is expected to generate 0.87 times more return on investment than Mendus AB. However, Clemondo Group AB is 1.14 times less risky than Mendus AB. It trades about -0.02 of its potential returns per unit of risk. Mendus AB is currently generating about -0.35 per unit of risk. If you would invest 77.00 in Clemondo Group AB on August 30, 2024 and sell it today you would lose (1.00) from holding Clemondo Group AB or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clemondo Group AB vs. Mendus AB
Performance |
| Timeline |
| Clemondo Group AB |
| Mendus AB |
Clemondo Group and Mendus AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clemondo Group and Mendus AB
The main advantage of trading using opposite Clemondo Group and Mendus AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clemondo Group position performs unexpectedly, Mendus AB 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 Mendus AB will offset losses from the drop in Mendus AB's long position.| Clemondo Group vs. Kancera AB | Clemondo Group vs. Acarix AS | Clemondo Group vs. Bambuser AB | Clemondo Group vs. Spectrumone publ 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 Managers module to screen money managers from public funds and ETFs managed around the world.
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