Correlation Between Minesto AB and Crunchfish
Can any of the company-specific risk be diversified away by investing in both Minesto AB and Crunchfish 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 Minesto AB and Crunchfish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minesto AB and Crunchfish AB, you can compare the effects of market volatilities on Minesto AB and Crunchfish 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 Minesto AB with a short position of Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minesto AB and Crunchfish.
Diversification Opportunities for Minesto AB and Crunchfish
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minesto and Crunchfish is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Minesto AB and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish AB and Minesto 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 Minesto AB are associated (or correlated) with Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of Minesto AB i.e., Minesto AB and Crunchfish go up and down completely randomly.
Pair Corralation between Minesto AB and Crunchfish
Assuming the 90 days trading horizon Minesto AB is expected to generate 1.29 times more return on investment than Crunchfish. However, Minesto AB is 1.29 times more volatile than Crunchfish AB. It trades about 0.06 of its potential returns per unit of risk. Crunchfish AB is currently generating about 0.07 per unit of risk. If you would invest 226.00 in Minesto AB on November 27, 2024 and sell it today you would earn a total of 11.00 from holding Minesto AB or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minesto AB vs. Crunchfish AB
Performance |
| Timeline |
| Minesto AB |
| Crunchfish AB |
Minesto AB and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minesto AB and Crunchfish
The main advantage of trading using opposite Minesto AB and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minesto AB position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish's long position.| Minesto AB vs. SolTech Energy Sweden | Minesto AB vs. Eolus Vind AB | Minesto AB vs. Climeon AB | Minesto AB vs. Powercell Sweden |
| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |