Correlation Between Mayr Melnhof and Stadlauer Malzfabrik
Can any of the company-specific risk be diversified away by investing in both Mayr Melnhof and Stadlauer Malzfabrik 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 Mayr Melnhof and Stadlauer Malzfabrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayr Melnhof Karton AG and Stadlauer Malzfabrik Aktiengesellschaft, you can compare the effects of market volatilities on Mayr Melnhof and Stadlauer Malzfabrik 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 Mayr Melnhof with a short position of Stadlauer Malzfabrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayr Melnhof and Stadlauer Malzfabrik.
Diversification Opportunities for Mayr Melnhof and Stadlauer Malzfabrik
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mayr and Stadlauer is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mayr Melnhof Karton AG and Stadlauer Malzfabrik Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadlauer Malzfabrik and Mayr Melnhof 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 Mayr Melnhof Karton AG are associated (or correlated) with Stadlauer Malzfabrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadlauer Malzfabrik has no effect on the direction of Mayr Melnhof i.e., Mayr Melnhof and Stadlauer Malzfabrik go up and down completely randomly.
Pair Corralation between Mayr Melnhof and Stadlauer Malzfabrik
Assuming the 90 days trading horizon Mayr Melnhof Karton AG is expected to under-perform the Stadlauer Malzfabrik. In addition to that, Mayr Melnhof is 1.05 times more volatile than Stadlauer Malzfabrik Aktiengesellschaft. It trades about -0.09 of its total potential returns per unit of risk. Stadlauer Malzfabrik Aktiengesellschaft is currently generating about -0.02 per unit of volatility. If you would invest 5,600 in Stadlauer Malzfabrik Aktiengesellschaft on November 28, 2024 and sell it today you would lose (450.00) from holding Stadlauer Malzfabrik Aktiengesellschaft or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayr Melnhof Karton AG vs. Stadlauer Malzfabrik Aktienges
Performance |
| Timeline |
| Mayr Melnhof Karton |
| Stadlauer Malzfabrik |
Mayr Melnhof and Stadlauer Malzfabrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayr Melnhof and Stadlauer Malzfabrik
The main advantage of trading using opposite Mayr Melnhof and Stadlauer Malzfabrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayr Melnhof position performs unexpectedly, Stadlauer Malzfabrik 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 Stadlauer Malzfabrik will offset losses from the drop in Stadlauer Malzfabrik's long position.| Mayr Melnhof vs. Wienerberger AG | Mayr Melnhof vs. Andritz AG | Mayr Melnhof vs. Lenzing Aktiengesellschaft | Mayr Melnhof vs. EVN AG |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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