Correlation Between MIPS AB and Thule Group
Can any of the company-specific risk be diversified away by investing in both MIPS AB and Thule Group 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 MIPS AB and Thule Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIPS AB and Thule Group AB, you can compare the effects of market volatilities on MIPS AB and Thule Group 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 MIPS AB with a short position of Thule Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIPS AB and Thule Group.
Diversification Opportunities for MIPS AB and Thule Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIPS and Thule is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MIPS AB and Thule Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thule Group AB and MIPS 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 MIPS AB are associated (or correlated) with Thule Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thule Group AB has no effect on the direction of MIPS AB i.e., MIPS AB and Thule Group go up and down completely randomly.
Pair Corralation between MIPS AB and Thule Group
Assuming the 90 days trading horizon MIPS AB is expected to generate 1.92 times less return on investment than Thule Group. In addition to that, MIPS AB is 1.05 times more volatile than Thule Group AB. It trades about 0.05 of its total potential returns per unit of risk. Thule Group AB is currently generating about 0.1 per unit of volatility. If you would invest 27,723 in Thule Group AB on November 3, 2024 and sell it today you would earn a total of 7,477 from holding Thule Group AB or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIPS AB vs. Thule Group AB
Performance |
| Timeline |
| MIPS AB |
| Thule Group AB |
MIPS AB and Thule Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIPS AB and Thule Group
The main advantage of trading using opposite MIPS AB and Thule Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIPS AB position performs unexpectedly, Thule Group 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 Thule Group will offset losses from the drop in Thule Group's long position.| MIPS AB vs. Thule Group AB | MIPS AB vs. Sinch AB | MIPS AB vs. Hexatronic Group AB | MIPS AB vs. NIBE Industrier AB |
| Thule Group vs. MIPS AB | Thule Group vs. NIBE Industrier AB | Thule Group vs. Dometic Group AB | Thule Group vs. Husqvarna 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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