Correlation Between MT 1997 and Coloseum Holding
Can any of the company-specific risk be diversified away by investing in both MT 1997 and Coloseum Holding 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 MT 1997 and Coloseum Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT 1997 AS and Coloseum Holding as, you can compare the effects of market volatilities on MT 1997 and Coloseum Holding 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 MT 1997 with a short position of Coloseum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT 1997 and Coloseum Holding.
Diversification Opportunities for MT 1997 and Coloseum Holding
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLIKY and Coloseum is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding MT 1997 AS and Coloseum Holding as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloseum Holding and MT 1997 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 MT 1997 AS are associated (or correlated) with Coloseum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloseum Holding has no effect on the direction of MT 1997 i.e., MT 1997 and Coloseum Holding go up and down completely randomly.
Pair Corralation between MT 1997 and Coloseum Holding
Assuming the 90 days trading horizon MT 1997 AS is expected to generate 0.16 times more return on investment than Coloseum Holding. However, MT 1997 AS is 6.37 times less risky than Coloseum Holding. It trades about -0.24 of its potential returns per unit of risk. Coloseum Holding as is currently generating about -0.2 per unit of risk. If you would invest 2,800,000 in MT 1997 AS on August 29, 2024 and sell it today you would lose (100,000) from holding MT 1997 AS or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MT 1997 AS vs. Coloseum Holding as
Performance |
| Timeline |
| MT 1997 AS |
| Coloseum Holding |
MT 1997 and Coloseum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT 1997 and Coloseum Holding
The main advantage of trading using opposite MT 1997 and Coloseum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT 1997 position performs unexpectedly, Coloseum Holding 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 Coloseum Holding will offset losses from the drop in Coloseum Holding's long position.| MT 1997 vs. Komercni Banka AS | MT 1997 vs. Raiffeisen Bank International | MT 1997 vs. Vienna Insurance Group | MT 1997 vs. JT ARCH INVESTMENTS |
| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus 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 CEOs Directory module to screen CEOs from public companies around the world.
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