Correlation Between MIPS AB and USWE Sports
Can any of the company-specific risk be diversified away by investing in both MIPS AB and USWE Sports 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 USWE Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIPS AB and USWE Sports AB, you can compare the effects of market volatilities on MIPS AB and USWE Sports 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 USWE Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIPS AB and USWE Sports.
Diversification Opportunities for MIPS AB and USWE Sports
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MIPS and USWE is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding MIPS AB and USWE Sports AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE Sports 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 USWE Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE Sports AB has no effect on the direction of MIPS AB i.e., MIPS AB and USWE Sports go up and down completely randomly.
Pair Corralation between MIPS AB and USWE Sports
Assuming the 90 days trading horizon MIPS AB is expected to generate 0.93 times more return on investment than USWE Sports. However, MIPS AB is 1.08 times less risky than USWE Sports. It trades about 0.03 of its potential returns per unit of risk. USWE Sports AB is currently generating about -0.03 per unit of risk. If you would invest 39,737 in MIPS AB on August 29, 2024 and sell it today you would earn a total of 7,543 from holding MIPS AB or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIPS AB vs. USWE Sports AB
Performance |
| Timeline |
| MIPS AB |
| USWE Sports AB |
MIPS AB and USWE Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIPS AB and USWE Sports
The main advantage of trading using opposite MIPS AB and USWE Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIPS AB position performs unexpectedly, USWE Sports 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 USWE Sports will offset losses from the drop in USWE Sports' 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 |
| USWE Sports vs. Awardit AB | USWE Sports vs. RVRC Holding AB | USWE Sports vs. MIPS AB | USWE Sports vs. Smart Eye 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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