Correlation Between MapsPeople and BankInvest Optima
Can any of the company-specific risk be diversified away by investing in both MapsPeople and BankInvest Optima 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 BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MapsPeople AS and BankInvest Optima 30, you can compare the effects of market volatilities on MapsPeople and BankInvest Optima 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 BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of MapsPeople and BankInvest Optima.
Diversification Opportunities for MapsPeople and BankInvest Optima
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MapsPeople and BankInvest is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding MapsPeople AS and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima 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 BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of MapsPeople i.e., MapsPeople and BankInvest Optima go up and down completely randomly.
Pair Corralation between MapsPeople and BankInvest Optima
Assuming the 90 days trading horizon MapsPeople AS is expected to generate 19.39 times more return on investment than BankInvest Optima. However, MapsPeople is 19.39 times more volatile than BankInvest Optima 30. It trades about 0.02 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.17 per unit of risk. If you would invest 161.00 in MapsPeople AS on August 29, 2024 and sell it today you would lose (12.00) from holding MapsPeople AS or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MapsPeople AS vs. BankInvest Optima 30
Performance |
| Timeline |
| MapsPeople AS |
| BankInvest Optima |
MapsPeople and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MapsPeople and BankInvest Optima
The main advantage of trading using opposite MapsPeople and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MapsPeople position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima's long position.| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
| BankInvest Optima vs. MapsPeople AS | BankInvest Optima vs. Penneo AS | BankInvest Optima vs. Dataproces Group AS | BankInvest Optima 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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