Correlation Between Multibax Public and Mitsib Leasing
Can any of the company-specific risk be diversified away by investing in both Multibax Public and Mitsib Leasing 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 Multibax Public and Mitsib Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multibax Public and Mitsib Leasing Public, you can compare the effects of market volatilities on Multibax Public and Mitsib Leasing 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 Multibax Public with a short position of Mitsib Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multibax Public and Mitsib Leasing.
Diversification Opportunities for Multibax Public and Mitsib Leasing
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multibax and Mitsib is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Multibax Public and Mitsib Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsib Leasing Public and Multibax Public 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 Multibax Public are associated (or correlated) with Mitsib Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsib Leasing Public has no effect on the direction of Multibax Public i.e., Multibax Public and Mitsib Leasing go up and down completely randomly.
Pair Corralation between Multibax Public and Mitsib Leasing
Assuming the 90 days trading horizon Multibax Public is expected to generate 1.03 times less return on investment than Mitsib Leasing. But when comparing it to its historical volatility, Multibax Public is 1.0 times less risky than Mitsib Leasing. It trades about 0.05 of its potential returns per unit of risk. Mitsib Leasing Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Mitsib Leasing Public on November 3, 2024 and sell it today you would lose (32.00) from holding Mitsib Leasing Public or give up 32.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Multibax Public vs. Mitsib Leasing Public
Performance |
| Timeline |
| Multibax Public |
| Mitsib Leasing Public |
Multibax Public and Mitsib Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multibax Public and Mitsib Leasing
The main advantage of trading using opposite Multibax Public and Mitsib Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multibax Public position performs unexpectedly, Mitsib Leasing 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 Mitsib Leasing will offset losses from the drop in Mitsib Leasing's long position.| Multibax Public vs. Lease IT Public | Multibax Public vs. MCS Steel Public | Multibax Public vs. Kingsmen CMTI Public | Multibax Public vs. Moong Pattana International |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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