Correlation Between Maven Wireless and Vitrolife
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Vitrolife 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 Vitrolife 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 Vitrolife AB, you can compare the effects of market volatilities on Maven Wireless and Vitrolife 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 Vitrolife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Vitrolife.
Diversification Opportunities for Maven Wireless and Vitrolife
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maven and Vitrolife is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Vitrolife AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitrolife 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 Vitrolife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitrolife AB has no effect on the direction of Maven Wireless i.e., Maven Wireless and Vitrolife go up and down completely randomly.
Pair Corralation between Maven Wireless and Vitrolife
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 1.8 times more return on investment than Vitrolife. However, Maven Wireless is 1.8 times more volatile than Vitrolife AB. It trades about 0.24 of its potential returns per unit of risk. Vitrolife AB is currently generating about 0.07 per unit of risk. If you would invest 1,025 in Maven Wireless Sweden on November 5, 2024 and sell it today you would earn a total of 205.00 from holding Maven Wireless Sweden or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Vitrolife AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Vitrolife AB |
Maven Wireless and Vitrolife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Vitrolife
The main advantage of trading using opposite Maven Wireless and Vitrolife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Vitrolife 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 Vitrolife will offset losses from the drop in Vitrolife'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 |
| Vitrolife vs. Redsense Medical AB | Vitrolife vs. Leading Edge Materials | Vitrolife vs. SolTech Energy Sweden | Vitrolife vs. Viaplay Group AB |
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 CEOs Directory module to screen CEOs from public companies around the world.
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