Correlation Between MUTUIONLINE and LEWAG HOLDING
Can any of the company-specific risk be diversified away by investing in both MUTUIONLINE and LEWAG 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 MUTUIONLINE and LEWAG HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MUTUIONLINE and LEWAG HOLDING AG, you can compare the effects of market volatilities on MUTUIONLINE and LEWAG 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 MUTUIONLINE with a short position of LEWAG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUTUIONLINE and LEWAG HOLDING.
Diversification Opportunities for MUTUIONLINE and LEWAG HOLDING
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MUTUIONLINE and LEWAG is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MUTUIONLINE and LEWAG HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEWAG HOLDING AG and MUTUIONLINE 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 MUTUIONLINE are associated (or correlated) with LEWAG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEWAG HOLDING AG has no effect on the direction of MUTUIONLINE i.e., MUTUIONLINE and LEWAG HOLDING go up and down completely randomly.
Pair Corralation between MUTUIONLINE and LEWAG HOLDING
Assuming the 90 days trading horizon MUTUIONLINE is expected to generate 0.72 times more return on investment than LEWAG HOLDING. However, MUTUIONLINE is 1.39 times less risky than LEWAG HOLDING. It trades about -0.25 of its potential returns per unit of risk. LEWAG HOLDING AG is currently generating about -0.24 per unit of risk. If you would invest 3,755 in MUTUIONLINE on October 24, 2024 and sell it today you would lose (235.00) from holding MUTUIONLINE or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MUTUIONLINE vs. LEWAG HOLDING AG
Performance |
| Timeline |
| MUTUIONLINE |
| LEWAG HOLDING AG |
MUTUIONLINE and LEWAG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUTUIONLINE and LEWAG HOLDING
The main advantage of trading using opposite MUTUIONLINE and LEWAG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUTUIONLINE position performs unexpectedly, LEWAG 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 LEWAG HOLDING will offset losses from the drop in LEWAG HOLDING's long position.| MUTUIONLINE vs. Molson Coors Beverage | MUTUIONLINE vs. United Insurance Holdings | MUTUIONLINE vs. National Beverage Corp | MUTUIONLINE vs. REVO INSURANCE SPA |
| LEWAG HOLDING vs. SPARTAN STORES | LEWAG HOLDING vs. X FAB Silicon Foundries | LEWAG HOLDING vs. China BlueChemical | LEWAG HOLDING vs. CHEMICAL INDUSTRIES |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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