Correlation Between Plan B and Muramoto Electron
Can any of the company-specific risk be diversified away by investing in both Plan B and Muramoto Electron 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 Plan B and Muramoto Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plan B Media and Muramoto Electron Public, you can compare the effects of market volatilities on Plan B and Muramoto Electron 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 Plan B with a short position of Muramoto Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plan B and Muramoto Electron.
Diversification Opportunities for Plan B and Muramoto Electron
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plan and Muramoto is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Plan B Media and Muramoto Electron Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muramoto Electron Public and Plan B 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 Plan B Media are associated (or correlated) with Muramoto Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muramoto Electron Public has no effect on the direction of Plan B i.e., Plan B and Muramoto Electron go up and down completely randomly.
Pair Corralation between Plan B and Muramoto Electron
Assuming the 90 days trading horizon Plan B Media is expected to generate 0.92 times more return on investment than Muramoto Electron. However, Plan B Media is 1.09 times less risky than Muramoto Electron. It trades about 0.06 of its potential returns per unit of risk. Muramoto Electron Public is currently generating about -0.2 per unit of risk. If you would invest 694.00 in Plan B Media on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Plan B Media or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plan B Media vs. Muramoto Electron Public
Performance |
| Timeline |
| Plan B Media |
| Muramoto Electron Public |
Plan B and Muramoto Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plan B and Muramoto Electron
The main advantage of trading using opposite Plan B and Muramoto Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plan B position performs unexpectedly, Muramoto Electron 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 Muramoto Electron will offset losses from the drop in Muramoto Electron's long position.| Plan B vs. VGI Public | Plan B vs. Minor International Public | Plan B vs. BTS Group Holdings | Plan B vs. Bangkok Dusit Medical |
| Muramoto Electron vs. Hana Microelectronics Public | Muramoto Electron vs. Lanna Resources Public | Muramoto Electron vs. MFEC PCL | Muramoto Electron vs. Lalin Property Public |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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