Correlation Between MYT Netherlands and Aimfinity Investment
Can any of the company-specific risk be diversified away by investing in both MYT Netherlands and Aimfinity Investment 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 MYT Netherlands and Aimfinity Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYT Netherlands Parent and Aimfinity Investment I, you can compare the effects of market volatilities on MYT Netherlands and Aimfinity Investment 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 MYT Netherlands with a short position of Aimfinity Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYT Netherlands and Aimfinity Investment.
Diversification Opportunities for MYT Netherlands and Aimfinity Investment
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between MYT and Aimfinity is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MYT Netherlands Parent and Aimfinity Investment I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimfinity Investment and MYT Netherlands 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 MYT Netherlands Parent are associated (or correlated) with Aimfinity Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimfinity Investment has no effect on the direction of MYT Netherlands i.e., MYT Netherlands and Aimfinity Investment go up and down completely randomly.
Pair Corralation between MYT Netherlands and Aimfinity Investment
Given the investment horizon of 90 days MYT Netherlands Parent is expected to under-perform the Aimfinity Investment. In addition to that, MYT Netherlands is 4.3 times more volatile than Aimfinity Investment I. It trades about -0.48 of its total potential returns per unit of risk. Aimfinity Investment I is currently generating about 0.14 per unit of volatility. If you would invest 1,204 in Aimfinity Investment I on December 23, 2024 and sell it today you would earn a total of 25.00 from holding Aimfinity Investment I or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYT Netherlands Parent vs. Aimfinity Investment I
Performance |
| Timeline |
| MYT Netherlands Parent |
| Aimfinity Investment |
MYT Netherlands and Aimfinity Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYT Netherlands and Aimfinity Investment
The main advantage of trading using opposite MYT Netherlands and Aimfinity Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYT Netherlands position performs unexpectedly, Aimfinity Investment 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 Aimfinity Investment will offset losses from the drop in Aimfinity Investment's long position.| MYT Netherlands vs. Movado Group | MYT Netherlands vs. Envela Corp | MYT Netherlands vs. Tapestry | MYT Netherlands vs. Capri Holdings |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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