Correlation Between Monnari Trade and Aplisens
Can any of the company-specific risk be diversified away by investing in both Monnari Trade and Aplisens 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 Monnari Trade and Aplisens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monnari Trade SA and Aplisens SA, you can compare the effects of market volatilities on Monnari Trade and Aplisens 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 Monnari Trade with a short position of Aplisens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monnari Trade and Aplisens.
Diversification Opportunities for Monnari Trade and Aplisens
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monnari and Aplisens is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Monnari Trade SA and Aplisens SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aplisens SA and Monnari Trade 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 Monnari Trade SA are associated (or correlated) with Aplisens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aplisens SA has no effect on the direction of Monnari Trade i.e., Monnari Trade and Aplisens go up and down completely randomly.
Pair Corralation between Monnari Trade and Aplisens
Assuming the 90 days trading horizon Monnari Trade SA is expected to under-perform the Aplisens. But the stock apears to be less risky and, when comparing its historical volatility, Monnari Trade SA is 1.09 times less risky than Aplisens. The stock trades about -0.15 of its potential returns per unit of risk. The Aplisens SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,870 in Aplisens SA on September 14, 2024 and sell it today you would lose (10.00) from holding Aplisens SA or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Monnari Trade SA vs. Aplisens SA
Performance |
| Timeline |
| Monnari Trade SA |
| Aplisens SA |
Monnari Trade and Aplisens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monnari Trade and Aplisens
The main advantage of trading using opposite Monnari Trade and Aplisens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monnari Trade position performs unexpectedly, Aplisens 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 Aplisens will offset losses from the drop in Aplisens' long position.| Monnari Trade vs. LPP SA | Monnari Trade vs. Asseco Business Solutions | Monnari Trade vs. Asseco South Eastern | Monnari Trade vs. HM Inwest SA |
| Aplisens vs. Banco Santander SA | Aplisens vs. UniCredit SpA | Aplisens vs. CEZ as | Aplisens vs. Polski Koncern Naftowy |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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