Correlation Between Maj Invest and Hove AS
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Hove AS 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 Maj Invest and Hove AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and Hove AS, you can compare the effects of market volatilities on Maj Invest and Hove AS 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 Maj Invest with a short position of Hove AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Hove AS.
Diversification Opportunities for Maj Invest and Hove AS
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and Hove is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and Hove AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hove AS and Maj 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 Maj Invest are associated (or correlated) with Hove AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hove AS has no effect on the direction of Maj Invest i.e., Maj Invest and Hove AS go up and down completely randomly.
Pair Corralation between Maj Invest and Hove AS
Assuming the 90 days trading horizon Maj Invest is expected to generate 0.06 times more return on investment than Hove AS. However, Maj Invest is 16.23 times less risky than Hove AS. It trades about 0.11 of its potential returns per unit of risk. Hove AS is currently generating about -0.13 per unit of risk. If you would invest 10,003 in Maj Invest on August 26, 2024 and sell it today you would earn a total of 38.00 from holding Maj Invest or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest vs. Hove AS
Performance |
| Timeline |
| Maj Invest |
| Hove AS |
Maj Invest and Hove AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Hove AS
The main advantage of trading using opposite Maj Invest and Hove AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Hove AS 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 Hove AS will offset losses from the drop in Hove AS's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Value | Maj Invest vs. Sparinvest Lange | Maj Invest vs. Investeringsforeningen Danske Invest |
| Hove AS vs. Scandinavian Medical Solutions | Hove AS vs. FOM Technologies AS | Hove AS vs. Shape Robotics AS | Hove AS vs. Dataproces Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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