Correlation Between Maven Wireless and Peab AB
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Peab 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 Peab 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 Peab AB, you can compare the effects of market volatilities on Maven Wireless and Peab 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Peab AB.
Diversification Opportunities for Maven Wireless and Peab AB
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maven and Peab is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Maven Wireless i.e., Maven Wireless and Peab AB go up and down completely randomly.
Pair Corralation between Maven Wireless and Peab AB
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 2.7 times more return on investment than Peab AB. However, Maven Wireless is 2.7 times more volatile than Peab AB. It trades about 0.16 of its potential returns per unit of risk. Peab AB is currently generating about 0.03 per unit of risk. If you would invest 1,010 in Maven Wireless Sweden on October 25, 2024 and sell it today you would earn a total of 100.00 from holding Maven Wireless Sweden or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Peab AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Peab AB |
Maven Wireless and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Peab AB
The main advantage of trading using opposite Maven Wireless and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Peab 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 Peab AB will offset losses from the drop in Peab AB's long position.| Maven Wireless vs. Checkin Group AB | Maven Wireless vs. Midsummer AB | Maven Wireless vs. Hexatronic Group AB | Maven Wireless vs. Cint Group AB |
| Peab AB vs. Maven Wireless Sweden | Peab AB vs. Bio Works Technologies AB | Peab AB vs. Train Alliance Sweden | Peab AB vs. Catena Media plc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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