Correlation Between Rush Factory and Musti Group
Can any of the company-specific risk be diversified away by investing in both Rush Factory and Musti Group 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 Rush Factory and Musti Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rush Factory Oyj and Musti Group Oyj, you can compare the effects of market volatilities on Rush Factory and Musti Group 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 Rush Factory with a short position of Musti Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Factory and Musti Group.
Diversification Opportunities for Rush Factory and Musti Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Musti is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Rush Factory Oyj and Musti Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Musti Group Oyj and Rush Factory 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 Rush Factory Oyj are associated (or correlated) with Musti Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Musti Group Oyj has no effect on the direction of Rush Factory i.e., Rush Factory and Musti Group go up and down completely randomly.
Pair Corralation between Rush Factory and Musti Group
Assuming the 90 days trading horizon Rush Factory Oyj is expected to generate 6.27 times more return on investment than Musti Group. However, Rush Factory is 6.27 times more volatile than Musti Group Oyj. It trades about 0.33 of its potential returns per unit of risk. Musti Group Oyj is currently generating about -0.19 per unit of risk. If you would invest 30.00 in Rush Factory Oyj on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Rush Factory Oyj or generate 120.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rush Factory Oyj vs. Musti Group Oyj
Performance |
| Timeline |
| Rush Factory Oyj |
| Musti Group Oyj |
Rush Factory and Musti Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Factory and Musti Group
The main advantage of trading using opposite Rush Factory and Musti Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Factory position performs unexpectedly, Musti Group 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 Musti Group will offset losses from the drop in Musti Group's long position.| Rush Factory vs. Nexstim Oyj | Rush Factory vs. Titanium Oyj | Rush Factory vs. Vincit Group Oyj | Rush Factory vs. Solteq PLC |
| Musti Group vs. Harvia Oyj | Musti Group vs. Tokmanni Group Oyj | Musti Group vs. Kamux Suomi Oy | Musti Group vs. Revenio Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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