Correlation Between Mitie Group and PFSweb
Can any of the company-specific risk be diversified away by investing in both Mitie Group and PFSweb 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 Mitie Group and PFSweb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitie Group Plc and PFSweb Inc, you can compare the effects of market volatilities on Mitie Group and PFSweb 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 Mitie Group with a short position of PFSweb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and PFSweb.
Diversification Opportunities for Mitie Group and PFSweb
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitie and PFSweb is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group Plc and PFSweb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFSweb Inc and Mitie Group 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 Mitie Group Plc are associated (or correlated) with PFSweb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFSweb Inc has no effect on the direction of Mitie Group i.e., Mitie Group and PFSweb go up and down completely randomly.
Pair Corralation between Mitie Group and PFSweb
If you would invest 560.00 in Mitie Group Plc on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Mitie Group Plc or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Mitie Group Plc vs. PFSweb Inc
Performance |
| Timeline |
| Mitie Group Plc |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mitie Group and PFSweb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and PFSweb
The main advantage of trading using opposite Mitie Group and PFSweb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, PFSweb 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 PFSweb will offset losses from the drop in PFSweb's long position.| Mitie Group vs. Intertek Group Plc | Mitie Group vs. Wildpack Beverage | Mitie Group vs. DATA Communications Management | Mitie Group vs. Dexterra Group |
| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |