Correlation Between Major Cineplex and Yggdrazil Group
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By analyzing existing cross correlation between Major Cineplex Group and Yggdrazil Group Public, you can compare the effects of market volatilities on Major Cineplex and Yggdrazil Group 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 Major Cineplex with a short position of Yggdrazil Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and Yggdrazil Group.
Diversification Opportunities for Major Cineplex and Yggdrazil Group
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Major and Yggdrazil is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Group and Yggdrazil Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yggdrazil Group Public and Major Cineplex 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 Major Cineplex Group are associated (or correlated) with Yggdrazil Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yggdrazil Group Public has no effect on the direction of Major Cineplex i.e., Major Cineplex and Yggdrazil Group go up and down completely randomly.
Pair Corralation between Major Cineplex and Yggdrazil Group
Assuming the 90 days trading horizon Major Cineplex Group is expected to generate 40.68 times more return on investment than Yggdrazil Group. However, Major Cineplex is 40.68 times more volatile than Yggdrazil Group Public. It trades about 0.16 of its potential returns per unit of risk. Yggdrazil Group Public is currently generating about -0.16 per unit of risk. If you would invest 1,450 in Major Cineplex Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Major Cineplex Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Major Cineplex Group vs. Yggdrazil Group Public
Performance |
| Timeline |
| Major Cineplex Group |
| Yggdrazil Group Public |
Major Cineplex and Yggdrazil Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and Yggdrazil Group
The main advantage of trading using opposite Major Cineplex and Yggdrazil Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex position performs unexpectedly, Yggdrazil Group 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 Yggdrazil Group will offset losses from the drop in Yggdrazil Group's long position.The idea behind Major Cineplex Group and Yggdrazil Group Public 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.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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