Correlation Between MPC Container and Axactor SE
Can any of the company-specific risk be diversified away by investing in both MPC Container and Axactor SE 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 MPC Container and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MPC Container Ships and Axactor SE, you can compare the effects of market volatilities on MPC Container and Axactor SE 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 MPC Container with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPC Container and Axactor SE.
Diversification Opportunities for MPC Container and Axactor SE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MPC and Axactor is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MPC Container Ships and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and MPC Container 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 MPC Container Ships are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of MPC Container i.e., MPC Container and Axactor SE go up and down completely randomly.
Pair Corralation between MPC Container and Axactor SE
Assuming the 90 days trading horizon MPC Container Ships is expected to generate 1.16 times more return on investment than Axactor SE. However, MPC Container is 1.16 times more volatile than Axactor SE. It trades about 0.01 of its potential returns per unit of risk. Axactor SE is currently generating about -0.34 per unit of risk. If you would invest 2,310 in MPC Container Ships on August 29, 2024 and sell it today you would lose (10.00) from holding MPC Container Ships or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MPC Container Ships vs. Axactor SE
Performance |
| Timeline |
| MPC Container Ships |
| Axactor SE |
MPC Container and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MPC Container and Axactor SE
The main advantage of trading using opposite MPC Container and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPC Container position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| MPC Container vs. Shelf Drilling | MPC Container vs. Solstad Offsho | MPC Container vs. Eidesvik Offshore ASA | MPC Container vs. Elkem ASA |
| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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