Correlation Between MTI Investment and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both MTI Investment and Goodbye Kansas 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 MTI Investment and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTI Investment SE and Goodbye Kansas Group, you can compare the effects of market volatilities on MTI Investment and Goodbye Kansas 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 MTI Investment with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTI Investment and Goodbye Kansas.
Diversification Opportunities for MTI Investment and Goodbye Kansas
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTI and Goodbye is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MTI Investment SE and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and MTI Investment 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 MTI Investment SE are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of MTI Investment i.e., MTI Investment and Goodbye Kansas go up and down completely randomly.
Pair Corralation between MTI Investment and Goodbye Kansas
Assuming the 90 days trading horizon MTI Investment SE is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, MTI Investment SE is 4.55 times less risky than Goodbye Kansas. The stock trades about -0.04 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21,419 in Goodbye Kansas Group on September 14, 2024 and sell it today you would lose (21,277) from holding Goodbye Kansas Group or give up 99.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTI Investment SE vs. Goodbye Kansas Group
Performance |
| Timeline |
| MTI Investment SE |
| Goodbye Kansas Group |
MTI Investment and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTI Investment and Goodbye Kansas
The main advantage of trading using opposite MTI Investment and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTI Investment position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| MTI Investment vs. Catella AB | MTI Investment vs. Catella AB A | MTI Investment vs. KABE Group AB | MTI Investment vs. IAR Systems Group |
| Goodbye Kansas vs. MTI Investment SE | Goodbye Kansas vs. Kinnevik Investment AB | Goodbye Kansas vs. Nexam Chemical Holding | Goodbye Kansas vs. eEducation Albert 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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