Correlation Between Fundamental Invest and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Fundamental Invest and MapsPeople 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 Fundamental Invest and MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Invest Stock and MapsPeople AS, you can compare the effects of market volatilities on Fundamental Invest and MapsPeople 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 Fundamental Invest with a short position of MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Invest and MapsPeople.
Diversification Opportunities for Fundamental Invest and MapsPeople
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fundamental and MapsPeople is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Invest Stock and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS and Fundamental Invest 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 Fundamental Invest Stock are associated (or correlated) with MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Fundamental Invest i.e., Fundamental Invest and MapsPeople go up and down completely randomly.
Pair Corralation between Fundamental Invest and MapsPeople
Assuming the 90 days trading horizon Fundamental Invest Stock is expected to under-perform the MapsPeople. But the stock apears to be less risky and, when comparing its historical volatility, Fundamental Invest Stock is 9.39 times less risky than MapsPeople. The stock trades about -0.16 of its potential returns per unit of risk. The MapsPeople AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 161.00 in MapsPeople AS on August 29, 2024 and sell it today you would lose (12.00) from holding MapsPeople AS or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Invest Stock vs. MapsPeople AS
Performance |
| Timeline |
| Fundamental Invest Stock |
| MapsPeople AS |
Fundamental Invest and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Invest and MapsPeople
The main advantage of trading using opposite Fundamental Invest and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Invest position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople's long position.| Fundamental Invest vs. Novo Nordisk AS | Fundamental Invest vs. Nordea Bank Abp | Fundamental Invest vs. DSV Panalpina AS | Fundamental Invest vs. AP Mller |
| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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