Correlation Between GRENKELEASING Dusseldorf and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING Dusseldorf and Meiko Electronics 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 GRENKELEASING Dusseldorf and Meiko Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and Meiko Electronics Co, you can compare the effects of market volatilities on GRENKELEASING Dusseldorf and Meiko Electronics 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 GRENKELEASING Dusseldorf with a short position of Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING Dusseldorf and Meiko Electronics.
Diversification Opportunities for GRENKELEASING Dusseldorf and Meiko Electronics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRENKELEASING and Meiko is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf are associated (or correlated) with Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of GRENKELEASING Dusseldorf i.e., GRENKELEASING Dusseldorf and Meiko Electronics go up and down completely randomly.
Pair Corralation between GRENKELEASING Dusseldorf and Meiko Electronics
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.69 times more return on investment than Meiko Electronics. However, GRENKELEASING Dusseldorf is 1.45 times less risky than Meiko Electronics. It trades about 0.0 of its potential returns per unit of risk. Meiko Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 1,646 in GRENKELEASING Dusseldorf on November 7, 2024 and sell it today you would lose (4.00) from holding GRENKELEASING Dusseldorf or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. Meiko Electronics Co
Performance |
| Timeline |
| GRENKELEASING Dusseldorf |
| Meiko Electronics |
GRENKELEASING Dusseldorf and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING Dusseldorf and Meiko Electronics
The main advantage of trading using opposite GRENKELEASING Dusseldorf and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING Dusseldorf position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' long position.| GRENKELEASING Dusseldorf vs. Extra Space Storage | GRENKELEASING Dusseldorf vs. SILVER BULLET DATA | GRENKELEASING Dusseldorf vs. Teradata Corp | GRENKELEASING Dusseldorf vs. DICKER DATA LTD |
| Meiko Electronics vs. Mitsubishi Materials | Meiko Electronics vs. Cogent Communications Holdings | Meiko Electronics vs. Hyster Yale Materials Handling | Meiko Electronics vs. Materialise 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |