Correlation Between Evolution and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both Evolution 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 Evolution and Maven Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution AB and Maven Wireless Sweden, you can compare the effects of market volatilities on Evolution 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 Evolution with a short position of Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution and Maven Wireless.
Diversification Opportunities for Evolution and Maven Wireless
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evolution and Maven is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Evolution 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 Evolution 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 Evolution 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 Evolution i.e., Evolution and Maven Wireless go up and down completely randomly.
Pair Corralation between Evolution and Maven Wireless
Assuming the 90 days trading horizon Evolution AB is expected to under-perform the Maven Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Evolution AB is 1.65 times less risky than Maven Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Maven Wireless Sweden is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Maven Wireless Sweden on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Maven Wireless Sweden or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Evolution AB vs. Maven Wireless Sweden
Performance |
| Timeline |
| Evolution AB |
| Maven Wireless Sweden |
Evolution and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution and Maven Wireless
The main advantage of trading using opposite Evolution and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution 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.| Evolution vs. Embracer Group AB | Evolution vs. Sinch AB | Evolution vs. Kambi Group PLC | Evolution vs. Samhllsbyggnadsbolaget i Norden |
| 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 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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