Correlation Between Penneo AS and Maj Invest
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By analyzing existing cross correlation between Penneo AS and Maj Invest Glob, you can compare the effects of market volatilities on Penneo AS and Maj Invest 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 Penneo AS with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and Maj Invest.
Diversification Opportunities for Penneo AS and Maj Invest
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penneo and Maj is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob and Penneo AS 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 Penneo AS are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Penneo AS i.e., Penneo AS and Maj Invest go up and down completely randomly.
Pair Corralation between Penneo AS and Maj Invest
Assuming the 90 days trading horizon Penneo AS is expected to under-perform the Maj Invest. In addition to that, Penneo AS is 3.14 times more volatile than Maj Invest Glob. It trades about -0.02 of its total potential returns per unit of risk. Maj Invest Glob is currently generating about 0.09 per unit of volatility. If you would invest 13,580 in Maj Invest Glob on August 29, 2024 and sell it today you would earn a total of 645.00 from holding Maj Invest Glob or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penneo AS vs. Maj Invest Glob
Performance |
| Timeline |
| Penneo AS |
| Maj Invest Glob |
Penneo AS and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and Maj Invest
The main advantage of trading using opposite Penneo AS and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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