Correlation Between MapsPeople and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both MapsPeople and BankIn Bredygt 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 MapsPeople and BankIn Bredygt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MapsPeople AS and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on MapsPeople and BankIn Bredygt 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 MapsPeople with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of MapsPeople and BankIn Bredygt.
Diversification Opportunities for MapsPeople and BankIn Bredygt
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MapsPeople and BankIn is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MapsPeople AS and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and MapsPeople 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 MapsPeople AS are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of MapsPeople i.e., MapsPeople and BankIn Bredygt go up and down completely randomly.
Pair Corralation between MapsPeople and BankIn Bredygt
Assuming the 90 days trading horizon MapsPeople AS is expected to under-perform the BankIn Bredygt. In addition to that, MapsPeople is 6.6 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.04 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.09 per unit of volatility. If you would invest 10,435 in BankIn Bredygt Klimaakt on August 25, 2024 and sell it today you would earn a total of 335.00 from holding BankIn Bredygt Klimaakt or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.33% |
| Values | Daily Returns |
MapsPeople AS vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| MapsPeople AS |
| BankIn Bredygt Klimaakt |
MapsPeople and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MapsPeople and BankIn Bredygt
The main advantage of trading using opposite MapsPeople and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MapsPeople position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
| BankIn Bredygt vs. MapsPeople AS | BankIn Bredygt vs. Penneo AS | BankIn Bredygt vs. Dataproces Group AS | BankIn Bredygt vs. Orderyoyo 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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