Correlation Between Polar Capital and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both Polar Capital and Mulberry Group 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 Polar Capital and Mulberry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Mulberry Group PLC, you can compare the effects of market volatilities on Polar Capital and Mulberry 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 Polar Capital with a short position of Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Mulberry Group.
Diversification Opportunities for Polar Capital and Mulberry Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polar and Mulberry is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group PLC and Polar Capital 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 Polar Capital Technology are associated (or correlated) with Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of Polar Capital i.e., Polar Capital and Mulberry Group go up and down completely randomly.
Pair Corralation between Polar Capital and Mulberry Group
Assuming the 90 days trading horizon Polar Capital Technology is expected to generate 0.3 times more return on investment than Mulberry Group. However, Polar Capital Technology is 3.3 times less risky than Mulberry Group. It trades about 0.1 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.01 per unit of risk. If you would invest 33,900 in Polar Capital Technology on September 15, 2024 and sell it today you would earn a total of 850.00 from holding Polar Capital Technology or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Capital Technology vs. Mulberry Group PLC
Performance |
| Timeline |
| Polar Capital Technology |
| Mulberry Group PLC |
Polar Capital and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Mulberry Group
The main advantage of trading using opposite Polar Capital and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital position performs unexpectedly, Mulberry 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| Polar Capital vs. Catalyst Media Group | Polar Capital vs. CATLIN GROUP | Polar Capital vs. Tamburi Investment Partners | Polar Capital vs. Magnora ASA |
| Mulberry Group vs. Spotify Technology SA | Mulberry Group vs. Take Two Interactive Software | Mulberry Group vs. Polar Capital Technology | Mulberry Group vs. Allianz Technology Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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