Correlation Between Mitie Group and Norma Group
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By analyzing existing cross correlation between Mitie Group PLC and Norma Group AG, you can compare the effects of market volatilities on Mitie Group and Norma Group 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 Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and Norma Group.
Diversification Opportunities for Mitie Group and Norma Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mitie and Norma is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG 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 Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of Mitie Group i.e., Mitie Group and Norma Group go up and down completely randomly.
Pair Corralation between Mitie Group and Norma Group
Assuming the 90 days horizon Mitie Group PLC is expected to under-perform the Norma Group. But the stock apears to be less risky and, when comparing its historical volatility, Mitie Group PLC is 1.19 times less risky than Norma Group. The stock trades about -0.06 of its potential returns per unit of risk. The Norma Group AG is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Norma Group AG on September 3, 2024 and sell it today you would lose (132.00) from holding Norma Group AG or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitie Group PLC vs. Norma Group AG
Performance |
| Timeline |
| Mitie Group PLC |
| Norma Group AG |
Mitie Group and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and Norma Group
The main advantage of trading using opposite Mitie Group and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group's long position.| Mitie Group vs. SINGAPORE AIRLINES | Mitie Group vs. AEGEAN AIRLINES | Mitie Group vs. AECOM TECHNOLOGY | Mitie Group vs. Casio Computer CoLtd |
| Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. Mitie Group PLC | Norma Group vs. LODESTAR MIN |
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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