Correlation Between NEXANS and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both NEXANS and MICRONIC MYDATA 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 NEXANS and MICRONIC MYDATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXANS and MICRONIC MYDATA, you can compare the effects of market volatilities on NEXANS and MICRONIC MYDATA 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 NEXANS with a short position of MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXANS and MICRONIC MYDATA.
Diversification Opportunities for NEXANS and MICRONIC MYDATA
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NEXANS and MICRONIC is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NEXANS and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA and NEXANS 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 NEXANS are associated (or correlated) with MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of NEXANS i.e., NEXANS and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between NEXANS and MICRONIC MYDATA
Assuming the 90 days trading horizon NEXANS is expected to under-perform the MICRONIC MYDATA. In addition to that, NEXANS is 1.07 times more volatile than MICRONIC MYDATA. It trades about -0.15 of its total potential returns per unit of risk. MICRONIC MYDATA is currently generating about 0.16 per unit of volatility. If you would invest 3,318 in MICRONIC MYDATA on September 19, 2024 and sell it today you would earn a total of 182.00 from holding MICRONIC MYDATA or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXANS vs. MICRONIC MYDATA
Performance |
| Timeline |
| NEXANS |
| MICRONIC MYDATA |
NEXANS and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXANS and MICRONIC MYDATA
The main advantage of trading using opposite NEXANS and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXANS position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| NEXANS vs. Fidelity National Information | NEXANS vs. Science Applications International | NEXANS vs. National Storage Affiliates | NEXANS vs. PKSHA TECHNOLOGY INC |
| MICRONIC MYDATA vs. United Utilities Group | MICRONIC MYDATA vs. ASSOC BR FOODS | MICRONIC MYDATA vs. National Beverage Corp | MICRONIC MYDATA vs. British American Tobacco |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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