Correlation Between MapsPeople and Konsolidator
Can any of the company-specific risk be diversified away by investing in both MapsPeople and Konsolidator 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 Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MapsPeople AS and Konsolidator AS, you can compare the effects of market volatilities on MapsPeople and Konsolidator 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 Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of MapsPeople and Konsolidator.
Diversification Opportunities for MapsPeople and Konsolidator
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between MapsPeople and Konsolidator is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding MapsPeople AS and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator AS 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 Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of MapsPeople i.e., MapsPeople and Konsolidator go up and down completely randomly.
Pair Corralation between MapsPeople and Konsolidator
Assuming the 90 days trading horizon MapsPeople AS is expected to under-perform the Konsolidator. In addition to that, MapsPeople is 5.17 times more volatile than Konsolidator AS. It trades about -0.03 of its total potential returns per unit of risk. Konsolidator AS is currently generating about -0.02 per unit of volatility. If you would invest 386.00 in Konsolidator AS on August 25, 2024 and sell it today you would lose (6.00) from holding Konsolidator AS or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MapsPeople AS vs. Konsolidator AS
Performance |
| Timeline |
| MapsPeople AS |
| Konsolidator AS |
MapsPeople and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MapsPeople and Konsolidator
The main advantage of trading using opposite MapsPeople and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MapsPeople position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
| Konsolidator vs. MapsPeople AS | Konsolidator vs. Sparinvest INDEX Globale | Konsolidator vs. Bavarian Nordic | Konsolidator vs. Investeringsselskabet Luxor 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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