Correlation Between Raba Jarmuipari and 4iG Nyrt
Can any of the company-specific risk be diversified away by investing in both Raba Jarmuipari and 4iG Nyrt 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 Raba Jarmuipari and 4iG Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raba Jarmuipari Holding and 4iG Nyrt, you can compare the effects of market volatilities on Raba Jarmuipari and 4iG Nyrt 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 Raba Jarmuipari with a short position of 4iG Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raba Jarmuipari and 4iG Nyrt.
Diversification Opportunities for Raba Jarmuipari and 4iG Nyrt
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Raba and 4iG is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Raba Jarmuipari Holding and 4iG Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4iG Nyrt and Raba Jarmuipari 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 Raba Jarmuipari Holding are associated (or correlated) with 4iG Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4iG Nyrt has no effect on the direction of Raba Jarmuipari i.e., Raba Jarmuipari and 4iG Nyrt go up and down completely randomly.
Pair Corralation between Raba Jarmuipari and 4iG Nyrt
Assuming the 90 days trading horizon Raba Jarmuipari is expected to generate 6.44 times less return on investment than 4iG Nyrt. But when comparing it to its historical volatility, Raba Jarmuipari Holding is 1.07 times less risky than 4iG Nyrt. It trades about 0.03 of its potential returns per unit of risk. 4iG Nyrt is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 79,500 in 4iG Nyrt on November 28, 2024 and sell it today you would earn a total of 92,500 from holding 4iG Nyrt or generate 116.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.63% |
| Values | Daily Returns |
Raba Jarmuipari Holding vs. 4iG Nyrt
Performance |
| Timeline |
| Raba Jarmuipari Holding |
| 4iG Nyrt |
Raba Jarmuipari and 4iG Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raba Jarmuipari and 4iG Nyrt
The main advantage of trading using opposite Raba Jarmuipari and 4iG Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raba Jarmuipari position performs unexpectedly, 4iG Nyrt 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 4iG Nyrt will offset losses from the drop in 4iG Nyrt's long position.| Raba Jarmuipari vs. OPUS GLOBAL Nyrt | Raba Jarmuipari vs. OTP Bank Nyrt | Raba Jarmuipari vs. Infineon Technologies AG | Raba Jarmuipari vs. Appeninn Nyrt |
| 4iG Nyrt vs. NordTelekom Telecommunications Service | 4iG Nyrt vs. Delta Technologies Nyrt | 4iG Nyrt vs. Deutsche Bank AG | 4iG Nyrt vs. Infineon Technologies AG |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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