Correlation Between Mentice AB and IZafe Group
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By analyzing existing cross correlation between Mentice AB and iZafe Group AB, you can compare the effects of market volatilities on Mentice AB and IZafe Group 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 Mentice AB with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mentice AB and IZafe Group.
Diversification Opportunities for Mentice AB and IZafe Group
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mentice and IZafe is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mentice AB and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and Mentice AB 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 Mentice AB are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of Mentice AB i.e., Mentice AB and IZafe Group go up and down completely randomly.
Pair Corralation between Mentice AB and IZafe Group
Assuming the 90 days trading horizon Mentice AB is expected to under-perform the IZafe Group. But the stock apears to be less risky and, when comparing its historical volatility, Mentice AB is 1.52 times less risky than IZafe Group. The stock trades about -0.02 of its potential returns per unit of risk. The iZafe Group AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 29.00 in iZafe Group AB on September 12, 2024 and sell it today you would lose (8.00) from holding iZafe Group AB or give up 27.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mentice AB vs. iZafe Group AB
Performance |
| Timeline |
| Mentice AB |
| iZafe Group AB |
Mentice AB and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mentice AB and IZafe Group
The main advantage of trading using opposite Mentice AB and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mentice AB position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| Mentice AB vs. Surgical Science Sweden | Mentice AB vs. C Rad AB | Mentice AB vs. Xvivo Perfusion AB | Mentice AB vs. Biotage AB |
| IZafe Group vs. Sprint Bioscience AB | IZafe Group vs. Acarix AS | IZafe Group vs. Annexin Pharmaceuticals 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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