Correlation Between Discount Print and Mader Group
Can any of the company-specific risk be diversified away by investing in both Discount Print and Mader 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 Discount Print and Mader Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Discount Print USA and Mader Group Limited, you can compare the effects of market volatilities on Discount Print and Mader 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 Discount Print with a short position of Mader Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discount Print and Mader Group.
Diversification Opportunities for Discount Print and Mader Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Discount and Mader is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Discount Print USA and Mader Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mader Group Limited and Discount Print 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 Discount Print USA are associated (or correlated) with Mader Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mader Group Limited has no effect on the direction of Discount Print i.e., Discount Print and Mader Group go up and down completely randomly.
Pair Corralation between Discount Print and Mader Group
Given the investment horizon of 90 days Discount Print USA is expected to generate 18.33 times more return on investment than Mader Group. However, Discount Print is 18.33 times more volatile than Mader Group Limited. It trades about 0.09 of its potential returns per unit of risk. Mader Group Limited is currently generating about -0.02 per unit of risk. If you would invest 0.03 in Discount Print USA on November 9, 2024 and sell it today you would lose (0.01) from holding Discount Print USA or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Discount Print USA vs. Mader Group Limited
Performance |
| Timeline |
| Discount Print USA |
| Mader Group Limited |
Discount Print and Mader Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Discount Print and Mader Group
The main advantage of trading using opposite Discount Print and Mader Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discount Print position performs unexpectedly, Mader 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 Mader Group will offset losses from the drop in Mader Group's long position.| Discount Print vs. AAP Inc | Discount Print vs. bioAffinity Technologies Warrant | Discount Print vs. Millennium Investment Acquisition |
| Mader Group vs. Cintas | Mader Group vs. Thomson Reuters Corp | Mader Group vs. Global Payments | Mader Group vs. Wolters Kluwer NV |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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