Correlation Between PolyPlank Publ and Minesto AB
Can any of the company-specific risk be diversified away by investing in both PolyPlank Publ and Minesto AB 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 PolyPlank Publ and Minesto AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PolyPlank publ AB and Minesto AB, you can compare the effects of market volatilities on PolyPlank Publ and Minesto AB 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 PolyPlank Publ with a short position of Minesto AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPlank Publ and Minesto AB.
Diversification Opportunities for PolyPlank Publ and Minesto AB
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PolyPlank and Minesto is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PolyPlank publ AB and Minesto AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minesto AB and PolyPlank Publ 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 PolyPlank publ AB are associated (or correlated) with Minesto AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minesto AB has no effect on the direction of PolyPlank Publ i.e., PolyPlank Publ and Minesto AB go up and down completely randomly.
Pair Corralation between PolyPlank Publ and Minesto AB
Assuming the 90 days trading horizon PolyPlank publ AB is expected to under-perform the Minesto AB. But the stock apears to be less risky and, when comparing its historical volatility, PolyPlank publ AB is 1.17 times less risky than Minesto AB. The stock trades about -0.03 of its potential returns per unit of risk. The Minesto AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Minesto AB on November 28, 2024 and sell it today you would earn a total of 8.00 from holding Minesto AB or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PolyPlank publ AB vs. Minesto AB
Performance |
| Timeline |
| PolyPlank publ AB |
| Minesto AB |
PolyPlank Publ and Minesto AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPlank Publ and Minesto AB
The main advantage of trading using opposite PolyPlank Publ and Minesto AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPlank Publ position performs unexpectedly, Minesto AB 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 Minesto AB will offset losses from the drop in Minesto AB's long position.| PolyPlank Publ vs. Saxlund Group AB | PolyPlank Publ vs. Online Brands Nordic | PolyPlank Publ vs. Organoclick AB | PolyPlank Publ vs. Minesto AB |
| Minesto AB vs. SolTech Energy Sweden | Minesto AB vs. Eolus Vind AB | Minesto AB vs. Climeon AB | Minesto AB vs. Powercell Sweden |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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