Correlation Between MapsPeople and Fundamental Invest
Can any of the company-specific risk be diversified away by investing in both MapsPeople and Fundamental Invest 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 Fundamental Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MapsPeople AS and Fundamental Invest Stock, you can compare the effects of market volatilities on MapsPeople and Fundamental Invest 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 Fundamental Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of MapsPeople and Fundamental Invest.
Diversification Opportunities for MapsPeople and Fundamental Invest
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MapsPeople and Fundamental is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MapsPeople AS and Fundamental Invest Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Invest Stock 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 Fundamental Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Invest Stock has no effect on the direction of MapsPeople i.e., MapsPeople and Fundamental Invest go up and down completely randomly.
Pair Corralation between MapsPeople and Fundamental Invest
Assuming the 90 days trading horizon MapsPeople AS is expected to under-perform the Fundamental Invest. In addition to that, MapsPeople is 9.74 times more volatile than Fundamental Invest Stock. It trades about -0.03 of its total potential returns per unit of risk. Fundamental Invest Stock is currently generating about -0.13 per unit of volatility. If you would invest 20,175 in Fundamental Invest Stock on August 25, 2024 and sell it today you would lose (679.00) from holding Fundamental Invest Stock or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MapsPeople AS vs. Fundamental Invest Stock
Performance |
| Timeline |
| MapsPeople AS |
| Fundamental Invest Stock |
MapsPeople and Fundamental Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MapsPeople and Fundamental Invest
The main advantage of trading using opposite MapsPeople and Fundamental Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MapsPeople position performs unexpectedly, Fundamental Invest 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 Fundamental Invest will offset losses from the drop in Fundamental Invest's long position.| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
| Fundamental Invest vs. Novo Nordisk AS | Fundamental Invest vs. Nordea Bank Abp | Fundamental Invest vs. DSV Panalpina AS | Fundamental Invest 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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