Correlation Between Multi Retail and Aquarius Engines
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Aquarius Engines 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 Multi Retail and Aquarius Engines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Retail Group and Aquarius Engines AM, you can compare the effects of market volatilities on Multi Retail and Aquarius Engines 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 Multi Retail with a short position of Aquarius Engines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Aquarius Engines.
Diversification Opportunities for Multi Retail and Aquarius Engines
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Aquarius is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Aquarius Engines AM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquarius Engines and Multi Retail 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 Multi Retail Group are associated (or correlated) with Aquarius Engines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquarius Engines has no effect on the direction of Multi Retail i.e., Multi Retail and Aquarius Engines go up and down completely randomly.
Pair Corralation between Multi Retail and Aquarius Engines
Assuming the 90 days trading horizon Multi Retail Group is expected to generate 0.53 times more return on investment than Aquarius Engines. However, Multi Retail Group is 1.9 times less risky than Aquarius Engines. It trades about 0.0 of its potential returns per unit of risk. Aquarius Engines AM is currently generating about -0.03 per unit of risk. If you would invest 136,800 in Multi Retail Group on September 3, 2024 and sell it today you would lose (32,900) from holding Multi Retail Group or give up 24.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Aquarius Engines AM
Performance |
| Timeline |
| Multi Retail Group |
| Aquarius Engines |
Multi Retail and Aquarius Engines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Aquarius Engines
The main advantage of trading using opposite Multi Retail and Aquarius Engines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Aquarius Engines 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 Aquarius Engines will offset losses from the drop in Aquarius Engines' long position.| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Israel Land Development |
| Aquarius Engines vs. Amir Marketing and | Aquarius Engines vs. Meitav Dash Investments | Aquarius Engines vs. Isras Investment | Aquarius Engines vs. Multi Retail Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world |