Correlation Between Multi Units and Jungfraubahn Holding
Can any of the company-specific risk be diversified away by investing in both Multi Units and Jungfraubahn 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 Multi Units and Jungfraubahn Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units Luxembourg and Jungfraubahn Holding AG, you can compare the effects of market volatilities on Multi Units and Jungfraubahn 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 Multi Units with a short position of Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and Jungfraubahn Holding.
Diversification Opportunities for Multi Units and Jungfraubahn Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi and Jungfraubahn is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding and Multi Units 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 Multi Units Luxembourg are associated (or correlated) with Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of Multi Units i.e., Multi Units and Jungfraubahn Holding go up and down completely randomly.
Pair Corralation between Multi Units and Jungfraubahn Holding
Assuming the 90 days trading horizon Multi Units Luxembourg is expected to generate 0.84 times more return on investment than Jungfraubahn Holding. However, Multi Units Luxembourg is 1.19 times less risky than Jungfraubahn Holding. It trades about 0.02 of its potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about 0.02 per unit of risk. If you would invest 14,830 in Multi Units Luxembourg on September 14, 2024 and sell it today you would earn a total of 44.00 from holding Multi Units Luxembourg or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units Luxembourg vs. Jungfraubahn Holding AG
Performance |
| Timeline |
| Multi Units Luxembourg |
| Jungfraubahn Holding |
Multi Units and Jungfraubahn Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and Jungfraubahn Holding
The main advantage of trading using opposite Multi Units and Jungfraubahn Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units position performs unexpectedly, Jungfraubahn 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 Jungfraubahn Holding will offset losses from the drop in Jungfraubahn Holding's long position.| Multi Units vs. Baloise Holding AG | Multi Units vs. 21Shares Polkadot ETP | Multi Units vs. UBS ETF MSCI | Multi Units vs. BB Biotech AG |
| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE HOLDING AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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