Correlation Between Endurance Motive and Mapfre
Can any of the company-specific risk be diversified away by investing in both Endurance Motive and Mapfre 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 Endurance Motive and Mapfre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Motive SA and Mapfre, you can compare the effects of market volatilities on Endurance Motive and Mapfre 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 Endurance Motive with a short position of Mapfre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Motive and Mapfre.
Diversification Opportunities for Endurance Motive and Mapfre
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endurance and Mapfre is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Motive SA and Mapfre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre and Endurance Motive 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 Endurance Motive SA are associated (or correlated) with Mapfre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre has no effect on the direction of Endurance Motive i.e., Endurance Motive and Mapfre go up and down completely randomly.
Pair Corralation between Endurance Motive and Mapfre
Assuming the 90 days trading horizon Endurance Motive SA is expected to under-perform the Mapfre. In addition to that, Endurance Motive is 1.2 times more volatile than Mapfre. It trades about -0.06 of its total potential returns per unit of risk. Mapfre is currently generating about 0.14 per unit of volatility. If you would invest 248.00 in Mapfre on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Mapfre or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endurance Motive SA vs. Mapfre
Performance |
| Timeline |
| Endurance Motive |
| Mapfre |
Endurance Motive and Mapfre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Motive and Mapfre
The main advantage of trading using opposite Endurance Motive and Mapfre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Motive position performs unexpectedly, Mapfre 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 Mapfre will offset losses from the drop in Mapfre's long position.| Endurance Motive vs. Elaia Investment Spain | Endurance Motive vs. Arteche Lantegi Elkartea | Endurance Motive vs. Home Capital Rentals | Endurance Motive vs. Tier1 Technology SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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