Correlation Between MLP Group and AC SA
Can any of the company-specific risk be diversified away by investing in both MLP Group and AC SA 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 MLP Group and AC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MLP Group SA and AC SA, you can compare the effects of market volatilities on MLP Group and AC SA 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 MLP Group with a short position of AC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MLP Group and AC SA.
Diversification Opportunities for MLP Group and AC SA
Very good diversification
The 3 months correlation between MLP and ACG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MLP Group SA and AC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC SA and MLP 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 MLP Group SA are associated (or correlated) with AC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC SA has no effect on the direction of MLP Group i.e., MLP Group and AC SA go up and down completely randomly.
Pair Corralation between MLP Group and AC SA
Assuming the 90 days trading horizon MLP Group is expected to generate 17.01 times less return on investment than AC SA. In addition to that, MLP Group is 2.02 times more volatile than AC SA. It trades about 0.0 of its total potential returns per unit of risk. AC SA is currently generating about 0.1 per unit of volatility. If you would invest 2,720 in AC SA on September 12, 2024 and sell it today you would earn a total of 210.00 from holding AC SA or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
MLP Group SA vs. AC SA
Performance |
| Timeline |
| MLP Group SA |
| AC SA |
MLP Group and AC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MLP Group and AC SA
The main advantage of trading using opposite MLP Group and AC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MLP Group position performs unexpectedly, AC SA 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 AC SA will offset losses from the drop in AC SA's long position.| MLP Group vs. Quantum Software SA | MLP Group vs. LSI Software SA | MLP Group vs. Carlson Investments SA | MLP Group vs. Tower Investments SA |
| AC SA vs. Santander Bank Polska | AC SA vs. Medicalg | AC SA vs. SOFTWARE MANSION SPOLKA | AC SA vs. ING Bank lski |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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