Correlation Between Mantex AB and Logistea A
Can any of the company-specific risk be diversified away by investing in both Mantex AB and Logistea A 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 Mantex AB and Logistea A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantex AB and Logistea A, you can compare the effects of market volatilities on Mantex AB and Logistea A 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 Mantex AB with a short position of Logistea A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantex AB and Logistea A.
Diversification Opportunities for Mantex AB and Logistea A
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mantex and Logistea is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mantex AB and Logistea A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea A and Mantex AB 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 Mantex AB are associated (or correlated) with Logistea A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea A has no effect on the direction of Mantex AB i.e., Mantex AB and Logistea A go up and down completely randomly.
Pair Corralation between Mantex AB and Logistea A
Assuming the 90 days trading horizon Mantex AB is expected to under-perform the Logistea A. In addition to that, Mantex AB is 2.14 times more volatile than Logistea A. It trades about -0.22 of its total potential returns per unit of risk. Logistea A is currently generating about 0.04 per unit of volatility. If you would invest 1,410 in Logistea A on September 3, 2024 and sell it today you would earn a total of 125.00 from holding Logistea A or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mantex AB vs. Logistea A
Performance |
| Timeline |
| Mantex AB |
| Logistea A |
Mantex AB and Logistea A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantex AB and Logistea A
The main advantage of trading using opposite Mantex AB and Logistea A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantex AB position performs unexpectedly, Logistea A 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 Logistea A will offset losses from the drop in Logistea A's long position.The idea behind Mantex AB and Logistea A 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.| Logistea A vs. New Wave Group | Logistea A vs. Clas Ohlson AB | Logistea A vs. BE Group AB | Logistea A vs. Betsson AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |