Correlation Between Mycronic Publ and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Mycronic Publ and Fluoguide 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 Mycronic Publ and Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mycronic publ AB and Fluoguide AS, you can compare the effects of market volatilities on Mycronic Publ and Fluoguide 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 Mycronic Publ with a short position of Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycronic Publ and Fluoguide.
Diversification Opportunities for Mycronic Publ and Fluoguide
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mycronic and Fluoguide is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mycronic publ AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS and Mycronic Publ 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 Mycronic publ AB are associated (or correlated) with Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Mycronic Publ i.e., Mycronic Publ and Fluoguide go up and down completely randomly.
Pair Corralation between Mycronic Publ and Fluoguide
Assuming the 90 days trading horizon Mycronic publ AB is expected to generate 0.72 times more return on investment than Fluoguide. However, Mycronic publ AB is 1.39 times less risky than Fluoguide. It trades about 0.18 of its potential returns per unit of risk. Fluoguide AS is currently generating about -0.09 per unit of risk. If you would invest 42,500 in Mycronic publ AB on November 28, 2024 and sell it today you would earn a total of 3,980 from holding Mycronic publ AB or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mycronic publ AB vs. Fluoguide AS
Performance |
| Timeline |
| Mycronic publ AB |
| Fluoguide AS |
Mycronic Publ and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mycronic Publ and Fluoguide
The main advantage of trading using opposite Mycronic Publ and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycronic Publ position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Mycronic Publ vs. Nolato AB | Mycronic Publ vs. Vitrolife AB | Mycronic Publ vs. Bure Equity AB | Mycronic Publ vs. Sectra AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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