Correlation Between Mendus AB and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both Mendus AB and JonDeTech Sensors 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 Mendus AB and JonDeTech Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mendus AB and JonDeTech Sensors, you can compare the effects of market volatilities on Mendus AB and JonDeTech Sensors 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 Mendus AB with a short position of JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mendus AB and JonDeTech Sensors.
Diversification Opportunities for Mendus AB and JonDeTech Sensors
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mendus and JonDeTech is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mendus AB and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors and Mendus AB 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 Mendus AB are associated (or correlated) with JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of Mendus AB i.e., Mendus AB and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between Mendus AB and JonDeTech Sensors
Assuming the 90 days trading horizon Mendus AB is expected to under-perform the JonDeTech Sensors. But the stock apears to be less risky and, when comparing its historical volatility, Mendus AB is 2.57 times less risky than JonDeTech Sensors. The stock trades about -0.01 of its potential returns per unit of risk. The JonDeTech Sensors is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 600.00 in JonDeTech Sensors on August 26, 2024 and sell it today you would lose (342.00) from holding JonDeTech Sensors or give up 57.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mendus AB vs. JonDeTech Sensors
Performance |
| Timeline |
| Mendus AB |
| JonDeTech Sensors |
Mendus AB and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mendus AB and JonDeTech Sensors
The main advantage of trading using opposite Mendus AB and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mendus AB position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.The idea behind Mendus AB and JonDeTech Sensors pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB | JonDeTech Sensors vs. IAR Systems Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |