Correlation Between Metacon AB and Atlas Copco
Can any of the company-specific risk be diversified away by investing in both Metacon AB and Atlas Copco 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 Metacon AB and Atlas Copco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metacon AB and Atlas Copco AB, you can compare the effects of market volatilities on Metacon AB and Atlas Copco 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 Metacon AB with a short position of Atlas Copco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metacon AB and Atlas Copco.
Diversification Opportunities for Metacon AB and Atlas Copco
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Metacon and Atlas is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Metacon AB and Atlas Copco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Copco AB and Metacon AB 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 Metacon AB are associated (or correlated) with Atlas Copco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Copco AB has no effect on the direction of Metacon AB i.e., Metacon AB and Atlas Copco go up and down completely randomly.
Pair Corralation between Metacon AB and Atlas Copco
If you would invest 0.00 in Metacon AB on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Metacon AB or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 5.88% |
Values | Daily Returns |
Metacon AB vs. Atlas Copco AB
Performance |
Timeline |
Metacon AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Copco AB |
Metacon AB and Atlas Copco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metacon AB and Atlas Copco
The main advantage of trading using opposite Metacon AB and Atlas Copco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metacon AB position performs unexpectedly, Atlas Copco 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 Atlas Copco will offset losses from the drop in Atlas Copco's long position.Metacon AB vs. Addtech AB | Metacon AB vs. MTI Investment SE | Metacon AB vs. Lime Technologies AB | Metacon AB vs. Catena Media plc |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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