Correlation Between Mitesco and So Young
Can any of the company-specific risk be diversified away by investing in both Mitesco and So Young 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 Mitesco and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitesco and So Young International, you can compare the effects of market volatilities on Mitesco and So Young 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 Mitesco with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitesco and So Young.
Diversification Opportunities for Mitesco and So Young
Weak diversification
The 3 months correlation between Mitesco and So Young is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mitesco and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and Mitesco 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 Mitesco are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of Mitesco i.e., Mitesco and So Young go up and down completely randomly.
Pair Corralation between Mitesco and So Young
Given the investment horizon of 90 days Mitesco is expected to generate 4.27 times more return on investment than So Young. However, Mitesco is 4.27 times more volatile than So Young International. It trades about 0.1 of its potential returns per unit of risk. So Young International is currently generating about -0.07 per unit of risk. If you would invest 52.00 in Mitesco on August 30, 2024 and sell it today you would lose (6.00) from holding Mitesco or give up 11.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitesco vs. So Young International
Performance |
| Timeline |
| Mitesco |
| So Young International |
Mitesco and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitesco and So Young
The main advantage of trading using opposite Mitesco and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitesco position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| Mitesco vs. Reliq Health Technologies | Mitesco vs. Healthcare Triangle | Mitesco vs. Bullfrog AI Holdings, | Mitesco vs. Mednow Inc |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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