Correlation Between Mitsib Leasing and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Mitsib Leasing and Autocorp Holding 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 Mitsib Leasing and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsib Leasing Public and Autocorp Holding Public, you can compare the effects of market volatilities on Mitsib Leasing and Autocorp Holding 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 Mitsib Leasing with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsib Leasing and Autocorp Holding.
Diversification Opportunities for Mitsib Leasing and Autocorp Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitsib and Autocorp is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mitsib Leasing Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Mitsib Leasing 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 Mitsib Leasing Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Mitsib Leasing i.e., Mitsib Leasing and Autocorp Holding go up and down completely randomly.
Pair Corralation between Mitsib Leasing and Autocorp Holding
Assuming the 90 days trading horizon Mitsib Leasing Public is expected to generate 0.58 times more return on investment than Autocorp Holding. However, Mitsib Leasing Public is 1.74 times less risky than Autocorp Holding. It trades about -0.12 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about -0.26 per unit of risk. If you would invest 74.00 in Mitsib Leasing Public on August 30, 2024 and sell it today you would lose (2.00) from holding Mitsib Leasing Public or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsib Leasing Public vs. Autocorp Holding Public
Performance |
| Timeline |
| Mitsib Leasing Public |
| Autocorp Holding Public |
Mitsib Leasing and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsib Leasing and Autocorp Holding
The main advantage of trading using opposite Mitsib Leasing and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsib Leasing position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Mitsib Leasing vs. Megachem Public | Mitsib Leasing vs. Multibax Public | Mitsib Leasing vs. MC Group Public | Mitsib Leasing vs. SCG PACKAGING PCL NVDR |
| Autocorp Holding vs. Megachem Public | Autocorp Holding vs. Multibax Public | Autocorp Holding vs. MC Group Public | Autocorp Holding vs. SCG PACKAGING PCL NVDR |
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 Stocks Directory module to find actively traded stocks across global markets.
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