Correlation Between Moncler SpA and Ming Le
Can any of the company-specific risk be diversified away by investing in both Moncler SpA and Ming Le 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 Moncler SpA and Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moncler SpA and Ming Le Sports, you can compare the effects of market volatilities on Moncler SpA and Ming Le 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 Moncler SpA with a short position of Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moncler SpA and Ming Le.
Diversification Opportunities for Moncler SpA and Ming Le
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Moncler and Ming is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Moncler SpA and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports and Moncler SpA 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 Moncler SpA are associated (or correlated) with Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of Moncler SpA i.e., Moncler SpA and Ming Le go up and down completely randomly.
Pair Corralation between Moncler SpA and Ming Le
Assuming the 90 days horizon Moncler SpA is expected to generate 0.73 times more return on investment than Ming Le. However, Moncler SpA is 1.36 times less risky than Ming Le. It trades about 0.28 of its potential returns per unit of risk. Ming Le Sports is currently generating about -0.34 per unit of risk. If you would invest 4,653 in Moncler SpA on October 1, 2024 and sell it today you would earn a total of 419.00 from holding Moncler SpA or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moncler SpA vs. Ming Le Sports
Performance |
| Timeline |
| Moncler SpA |
| Ming Le Sports |
Moncler SpA and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moncler SpA and Ming Le
The main advantage of trading using opposite Moncler SpA and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moncler SpA position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| Moncler SpA vs. HM HENMAUUNSPADR 15 | Moncler SpA vs. H M Hennes | Moncler SpA vs. VF Corporation | Moncler SpA vs. Ralph Lauren |
| Ming Le vs. HM HENMAUUNSPADR 15 | Ming Le vs. H M Hennes | Ming Le vs. Moncler SpA | Ming Le vs. VF Corporation |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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