Correlation Between Trisura and Mapfre SA
Can any of the company-specific risk be diversified away by investing in both Trisura and Mapfre SA 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 Trisura and Mapfre SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trisura Group and Mapfre SA, you can compare the effects of market volatilities on Trisura and Mapfre SA 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 Trisura with a short position of Mapfre SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisura and Mapfre SA.
Diversification Opportunities for Trisura and Mapfre SA
Excellent diversification
The 3 months correlation between Trisura and Mapfre is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Trisura Group and Mapfre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre SA and Trisura 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 Trisura Group are associated (or correlated) with Mapfre SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre SA has no effect on the direction of Trisura i.e., Trisura and Mapfre SA go up and down completely randomly.
Pair Corralation between Trisura and Mapfre SA
Assuming the 90 days trading horizon Trisura Group is expected to under-perform the Mapfre SA. In addition to that, Trisura is 1.12 times more volatile than Mapfre SA. It trades about -0.1 of its total potential returns per unit of risk. Mapfre SA is currently generating about 0.13 per unit of volatility. If you would invest 221.00 in Mapfre SA on November 2, 2024 and sell it today you would earn a total of 48.00 from holding Mapfre SA or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trisura Group vs. Mapfre SA
Performance |
| Timeline |
| Trisura Group |
| Mapfre SA |
Trisura and Mapfre SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisura and Mapfre SA
The main advantage of trading using opposite Trisura and Mapfre SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisura position performs unexpectedly, Mapfre SA 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 Mapfre SA will offset losses from the drop in Mapfre SA's long position.| Trisura vs. Sunny Optical Technology | Trisura vs. Playtech plc | Trisura vs. Minerals Technologies | Trisura vs. VELA TECHNOLPLC LS 0001 |
| Mapfre SA vs. MACOM Technology Solutions | Mapfre SA vs. GMO Internet | Mapfre SA vs. Insteel Industries | Mapfre SA vs. United States Steel |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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