Correlation Between Mycronic Publ and Malmbergs Elektriska
Can any of the company-specific risk be diversified away by investing in both Mycronic Publ and Malmbergs Elektriska 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 Malmbergs Elektriska 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 Malmbergs Elektriska AB, you can compare the effects of market volatilities on Mycronic Publ and Malmbergs Elektriska 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 Malmbergs Elektriska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycronic Publ and Malmbergs Elektriska.
Diversification Opportunities for Mycronic Publ and Malmbergs Elektriska
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mycronic and Malmbergs is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mycronic publ AB and Malmbergs Elektriska AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malmbergs Elektriska 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 Malmbergs Elektriska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malmbergs Elektriska has no effect on the direction of Mycronic Publ i.e., Mycronic Publ and Malmbergs Elektriska go up and down completely randomly.
Pair Corralation between Mycronic Publ and Malmbergs Elektriska
Assuming the 90 days trading horizon Mycronic publ AB is expected to generate 1.13 times more return on investment than Malmbergs Elektriska. However, Mycronic Publ is 1.13 times more volatile than Malmbergs Elektriska AB. It trades about 0.28 of its potential returns per unit of risk. Malmbergs Elektriska AB is currently generating about 0.07 per unit of risk. If you would invest 43,140 in Mycronic publ AB on November 18, 2024 and sell it today you would earn a total of 6,910 from holding Mycronic publ AB or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mycronic publ AB vs. Malmbergs Elektriska AB
Performance |
| Timeline |
| Mycronic publ AB |
| Malmbergs Elektriska |
Mycronic Publ and Malmbergs Elektriska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mycronic Publ and Malmbergs Elektriska
The main advantage of trading using opposite Mycronic Publ and Malmbergs Elektriska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycronic Publ position performs unexpectedly, Malmbergs Elektriska 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 Malmbergs Elektriska will offset losses from the drop in Malmbergs Elektriska's long position.| Mycronic Publ vs. Nolato AB | Mycronic Publ vs. Vitrolife AB | Mycronic Publ vs. Bure Equity AB | Mycronic Publ vs. Sectra AB |
| Malmbergs Elektriska vs. Divio Technologies AB | Malmbergs Elektriska vs. XMReality AB | Malmbergs Elektriska vs. Tingsvalvet Fastighets AB | Malmbergs Elektriska vs. KABE Group 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 Stocks Directory module to find actively traded stocks across global markets.
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