Correlation Between MapsPeople and Donkeyrepublic Holding
Can any of the company-specific risk be diversified away by investing in both MapsPeople and Donkeyrepublic Holding 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 Donkeyrepublic Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MapsPeople AS and Donkeyrepublic Holding AS, you can compare the effects of market volatilities on MapsPeople and Donkeyrepublic Holding 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 Donkeyrepublic Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of MapsPeople and Donkeyrepublic Holding.
Diversification Opportunities for MapsPeople and Donkeyrepublic Holding
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MapsPeople and Donkeyrepublic is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MapsPeople AS and Donkeyrepublic Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Donkeyrepublic Holding 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 Donkeyrepublic Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Donkeyrepublic Holding has no effect on the direction of MapsPeople i.e., MapsPeople and Donkeyrepublic Holding go up and down completely randomly.
Pair Corralation between MapsPeople and Donkeyrepublic Holding
Assuming the 90 days trading horizon MapsPeople AS is expected to under-perform the Donkeyrepublic Holding. In addition to that, MapsPeople is 3.64 times more volatile than Donkeyrepublic Holding AS. It trades about -0.06 of its total potential returns per unit of risk. Donkeyrepublic Holding AS is currently generating about -0.05 per unit of volatility. If you would invest 660.00 in Donkeyrepublic Holding AS on September 1, 2024 and sell it today you would lose (25.00) from holding Donkeyrepublic Holding AS or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MapsPeople AS vs. Donkeyrepublic Holding AS
Performance |
| Timeline |
| MapsPeople AS |
| Donkeyrepublic Holding |
MapsPeople and Donkeyrepublic Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MapsPeople and Donkeyrepublic Holding
The main advantage of trading using opposite MapsPeople and Donkeyrepublic Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MapsPeople position performs unexpectedly, Donkeyrepublic Holding 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 Donkeyrepublic Holding will offset losses from the drop in Donkeyrepublic Holding's long position.| MapsPeople vs. Penneo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics AS | MapsPeople vs. Danske Invest |
| Donkeyrepublic Holding vs. Novo Nordisk AS | Donkeyrepublic Holding vs. Nordea Bank Abp | Donkeyrepublic Holding vs. DSV Panalpina AS | Donkeyrepublic Holding vs. AP Mller |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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