Correlation Between Maven Wireless and Metacon AB
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Metacon AB 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 Maven Wireless and Metacon AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Metacon AB, you can compare the effects of market volatilities on Maven Wireless and Metacon AB 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 Maven Wireless with a short position of Metacon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Metacon AB.
Diversification Opportunities for Maven Wireless and Metacon AB
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maven and Metacon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Metacon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metacon AB and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with Metacon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metacon AB has no effect on the direction of Maven Wireless i.e., Maven Wireless and Metacon AB go up and down completely randomly.
Pair Corralation between Maven Wireless and Metacon AB
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 0.84 times more return on investment than Metacon AB. However, Maven Wireless Sweden is 1.19 times less risky than Metacon AB. It trades about 0.2 of its potential returns per unit of risk. Metacon AB is currently generating about -0.32 per unit of risk. If you would invest 1,025 in Maven Wireless Sweden on November 7, 2024 and sell it today you would earn a total of 175.00 from holding Maven Wireless Sweden or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Metacon AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Metacon AB |
Maven Wireless and Metacon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Metacon AB
The main advantage of trading using opposite Maven Wireless and Metacon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Metacon AB 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 Metacon AB will offset losses from the drop in Metacon AB's long position.| Maven Wireless vs. Lidds AB | Maven Wireless vs. Serstech AB | Maven Wireless vs. Transtema Group AB | Maven Wireless vs. Enorama Pharma AB |
| Metacon AB vs. FormPipe Software AB | Metacon AB vs. Sdiptech AB | Metacon AB vs. White Pearl Technology | Metacon AB vs. SolTech Energy Sweden |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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