Correlation Between National Retail and Mhlbauer Holding
Can any of the company-specific risk be diversified away by investing in both National Retail and Mhlbauer Holding 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 National Retail and Mhlbauer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Mhlbauer Holding AG, you can compare the effects of market volatilities on National Retail and Mhlbauer Holding 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 National Retail with a short position of Mhlbauer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Mhlbauer Holding.
Diversification Opportunities for National Retail and Mhlbauer Holding
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Mhlbauer is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and Mhlbauer Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mhlbauer Holding and National Retail 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 National Retail Properties are associated (or correlated) with Mhlbauer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mhlbauer Holding has no effect on the direction of National Retail i.e., National Retail and Mhlbauer Holding go up and down completely randomly.
Pair Corralation between National Retail and Mhlbauer Holding
Assuming the 90 days trading horizon National Retail Properties is expected to generate 0.65 times more return on investment than Mhlbauer Holding. However, National Retail Properties is 1.54 times less risky than Mhlbauer Holding. It trades about 0.05 of its potential returns per unit of risk. Mhlbauer Holding AG is currently generating about -0.07 per unit of risk. If you would invest 3,574 in National Retail Properties on September 4, 2024 and sell it today you would earn a total of 553.00 from holding National Retail Properties or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. Mhlbauer Holding AG
Performance |
| Timeline |
| National Retail Prop |
| Mhlbauer Holding |
National Retail and Mhlbauer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Mhlbauer Holding
The main advantage of trading using opposite National Retail and Mhlbauer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail position performs unexpectedly, Mhlbauer Holding 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 Mhlbauer Holding will offset losses from the drop in Mhlbauer Holding's long position.| National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc |
| Mhlbauer Holding vs. JIAHUA STORES | Mhlbauer Holding vs. Lifeway Foods | Mhlbauer Holding vs. National Retail Properties | Mhlbauer Holding vs. Premier Foods PLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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