Correlation Between Mitie Group and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both Mitie Group and HYBRIGENICS 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 Mitie Group and HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitie Group PLC and HYBRIGENICS A , you can compare the effects of market volatilities on Mitie Group and HYBRIGENICS 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 Mitie Group with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and HYBRIGENICS.
Diversification Opportunities for Mitie Group and HYBRIGENICS
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitie and HYBRIGENICS is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and Mitie Group 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 Mitie Group PLC are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Mitie Group i.e., Mitie Group and HYBRIGENICS go up and down completely randomly.
Pair Corralation between Mitie Group and HYBRIGENICS
Assuming the 90 days horizon Mitie Group PLC is expected to generate 0.43 times more return on investment than HYBRIGENICS. However, Mitie Group PLC is 2.32 times less risky than HYBRIGENICS. It trades about -0.07 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about -0.17 per unit of risk. If you would invest 119,850 in Mitie Group PLC on August 27, 2024 and sell it today you would lose (6,250) from holding Mitie Group PLC or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitie Group PLC vs. HYBRIGENICS A
Performance |
| Timeline |
| Mitie Group PLC |
| HYBRIGENICS A |
Mitie Group and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and HYBRIGENICS
The main advantage of trading using opposite Mitie Group and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| Mitie Group vs. WisdomTree Investments | Mitie Group vs. REINET INVESTMENTS SCA | Mitie Group vs. MCEWEN MINING INC | Mitie Group vs. Lion One Metals |
| HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Microsoft |
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 Stocks Directory module to find actively traded stocks across global markets.
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