Correlation Between Maj Invest and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Maj Invest and Maj Invest 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 Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and Maj Invest Value, you can compare the effects of market volatilities on Maj Invest and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Maj Invest.
Diversification Opportunities for Maj Invest and Maj Invest
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and Maj is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and Maj Invest Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Value 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Value has no effect on the direction of Maj Invest i.e., Maj Invest and Maj Invest go up and down completely randomly.
Pair Corralation between Maj Invest and Maj Invest
Assuming the 90 days trading horizon Maj Invest is expected to under-perform the Maj Invest. But the fund apears to be less risky and, when comparing its historical volatility, Maj Invest is 1.24 times less risky than Maj Invest. The fund trades about -0.2 of its potential returns per unit of risk. The Maj Invest Value is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 19,308 in Maj Invest Value on November 3, 2024 and sell it today you would earn a total of 960.00 from holding Maj Invest Value or generate 4.97% 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. Maj Invest Value
Performance |
| Timeline |
| Maj Invest |
| Maj Invest Value |
Maj Invest and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Maj Invest
The main advantage of trading using opposite Maj Invest and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Value | Maj Invest vs. Maj Invest Emerging | Maj Invest vs. Sparinvest Lange |
| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Emerging | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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