Correlation Between Maximus and Elis SA
Can any of the company-specific risk be diversified away by investing in both Maximus and Elis 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 Maximus and Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maximus and Elis SA, you can compare the effects of market volatilities on Maximus and Elis 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 Maximus with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maximus and Elis SA.
Diversification Opportunities for Maximus and Elis SA
Poor diversification
The 3 months correlation between Maximus and Elis is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Maximus and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA and Maximus 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 Maximus are associated (or correlated) with Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Maximus i.e., Maximus and Elis SA go up and down completely randomly.
Pair Corralation between Maximus and Elis SA
Considering the 90-day investment horizon Maximus is expected to generate 0.64 times more return on investment than Elis SA. However, Maximus is 1.55 times less risky than Elis SA. It trades about 0.0 of its potential returns per unit of risk. Elis SA is currently generating about -0.02 per unit of risk. If you would invest 7,685 in Maximus on November 3, 2024 and sell it today you would lose (156.00) from holding Maximus or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.02% |
| Values | Daily Returns |
Maximus vs. Elis SA
Performance |
| Timeline |
| Maximus |
| Elis SA |
Maximus and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maximus and Elis SA
The main advantage of trading using opposite Maximus and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maximus position performs unexpectedly, Elis 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 Elis SA will offset losses from the drop in Elis SA's long position.| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
| Elis SA vs. Maximus | Elis SA vs. Network 1 Technologies | Elis SA vs. First Advantage Corp | Elis SA vs. BrightView Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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