Correlation Between Mekonomen and Moberg Pharma
Can any of the company-specific risk be diversified away by investing in both Mekonomen and Moberg Pharma 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 Mekonomen and Moberg Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekonomen AB and Moberg Pharma AB, you can compare the effects of market volatilities on Mekonomen and Moberg Pharma 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 Mekonomen with a short position of Moberg Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekonomen and Moberg Pharma.
Diversification Opportunities for Mekonomen and Moberg Pharma
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mekonomen and Moberg is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mekonomen AB and Moberg Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moberg Pharma AB and Mekonomen 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 Mekonomen AB are associated (or correlated) with Moberg Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moberg Pharma AB has no effect on the direction of Mekonomen i.e., Mekonomen and Moberg Pharma go up and down completely randomly.
Pair Corralation between Mekonomen and Moberg Pharma
Assuming the 90 days trading horizon Mekonomen AB is expected to under-perform the Moberg Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Mekonomen AB is 3.38 times less risky than Moberg Pharma. The stock trades about -0.16 of its potential returns per unit of risk. The Moberg Pharma AB is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,267 in Moberg Pharma AB on September 1, 2024 and sell it today you would earn a total of 518.00 from holding Moberg Pharma AB or generate 40.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekonomen AB vs. Moberg Pharma AB
Performance |
| Timeline |
| Mekonomen AB |
| Moberg Pharma AB |
Mekonomen and Moberg Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekonomen and Moberg Pharma
The main advantage of trading using opposite Mekonomen and Moberg Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekonomen position performs unexpectedly, Moberg Pharma 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 Moberg Pharma will offset losses from the drop in Moberg Pharma's long position.| Mekonomen vs. NetJobs Group AB | Mekonomen vs. Mantex AB | Mekonomen vs. Doxa AB | Mekonomen vs. Clean Motion AB |
| Moberg Pharma vs. Swedencare publ AB | Moberg Pharma vs. Enzymatica publ AB | Moberg Pharma vs. KABE Group AB | Moberg Pharma vs. IAR Systems Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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