Correlation Between Momentum Group and Midsona AB
Can any of the company-specific risk be diversified away by investing in both Momentum Group and Midsona AB 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 Momentum Group and Midsona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Momentum Group AB and Midsona AB, you can compare the effects of market volatilities on Momentum Group and Midsona AB 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 Momentum Group with a short position of Midsona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Momentum Group and Midsona AB.
Diversification Opportunities for Momentum Group and Midsona AB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Momentum and Midsona is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Momentum Group AB and Midsona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midsona AB and Momentum 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 Momentum Group AB are associated (or correlated) with Midsona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midsona AB has no effect on the direction of Momentum Group i.e., Momentum Group and Midsona AB go up and down completely randomly.
Pair Corralation between Momentum Group and Midsona AB
If you would invest 17,000 in Momentum Group AB on August 24, 2024 and sell it today you would earn a total of 60.00 from holding Momentum Group AB or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Momentum Group AB vs. Midsona AB
Performance |
| Timeline |
| Momentum Group AB |
| Midsona AB |
Momentum Group and Midsona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Momentum Group and Midsona AB
The main advantage of trading using opposite Momentum Group and Midsona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Momentum Group position performs unexpectedly, Midsona AB 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 Midsona AB will offset losses from the drop in Midsona AB's long position.| Momentum Group vs. Bergman Beving AB | Momentum Group vs. Lagercrantz Group AB | Momentum Group vs. AddLife AB | Momentum Group vs. Addtech AB |
| Midsona AB vs. Midsona AB | Midsona AB vs. Know IT AB | Midsona AB vs. Probi AB | Midsona AB vs. BTS Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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