Correlation Between Mitie Group and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both Mitie Group and Dis Fastigheter 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 Dis Fastigheter 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 Dis Fastigheter AB, you can compare the effects of market volatilities on Mitie Group and Dis Fastigheter 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 Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and Dis Fastigheter.
Diversification Opportunities for Mitie Group and Dis Fastigheter
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitie and Dis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB 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 Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of Mitie Group i.e., Mitie Group and Dis Fastigheter go up and down completely randomly.
Pair Corralation between Mitie Group and Dis Fastigheter
Assuming the 90 days horizon Mitie Group PLC is expected to generate 1.69 times more return on investment than Dis Fastigheter. However, Mitie Group is 1.69 times more volatile than Dis Fastigheter AB. It trades about -0.08 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.15 per unit of risk. If you would invest 121,700 in Mitie Group PLC on August 25, 2024 and sell it today you would lose (8,100) from holding Mitie Group PLC or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mitie Group PLC vs. Dis Fastigheter AB
Performance |
| Timeline |
| Mitie Group PLC |
| Dis Fastigheter AB |
Mitie Group and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and Dis Fastigheter
The main advantage of trading using opposite Mitie Group and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, Dis Fastigheter 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter's long position.| Mitie Group vs. Thermo Fisher Scientific | Mitie Group vs. DexCom Inc | Mitie Group vs. Superior Plus Corp | Mitie Group vs. Origin Agritech |
| Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. NMI Holdings | Dis Fastigheter vs. Origin Agritech | Dis Fastigheter vs. SIVERS SEMICONDUCTORS 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |