Correlation Between Serstech and Mavshack Publ
Can any of the company-specific risk be diversified away by investing in both Serstech and Mavshack Publ 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 Serstech and Mavshack Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Serstech AB and Mavshack publ AB, you can compare the effects of market volatilities on Serstech and Mavshack Publ 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 Serstech with a short position of Mavshack Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serstech and Mavshack Publ.
Diversification Opportunities for Serstech and Mavshack Publ
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Serstech and Mavshack is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Serstech AB and Mavshack publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavshack publ AB and Serstech 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 Serstech AB are associated (or correlated) with Mavshack Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavshack publ AB has no effect on the direction of Serstech i.e., Serstech and Mavshack Publ go up and down completely randomly.
Pair Corralation between Serstech and Mavshack Publ
Assuming the 90 days trading horizon Serstech AB is expected to generate 0.68 times more return on investment than Mavshack Publ. However, Serstech AB is 1.47 times less risky than Mavshack Publ. It trades about 0.0 of its potential returns per unit of risk. Mavshack publ AB is currently generating about -0.19 per unit of risk. If you would invest 125.00 in Serstech AB on August 28, 2024 and sell it today you would lose (12.00) from holding Serstech AB or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Serstech AB vs. Mavshack publ AB
Performance |
| Timeline |
| Serstech AB |
| Mavshack publ AB |
Serstech and Mavshack Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Serstech and Mavshack Publ
The main advantage of trading using opposite Serstech and Mavshack Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serstech position performs unexpectedly, Mavshack Publ 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 Mavshack Publ will offset losses from the drop in Mavshack Publ's long position.| Serstech vs. Enzymatica publ AB | Serstech vs. Polygiene AB | Serstech vs. Sprint Bioscience AB | Serstech vs. XMReality AB |
| Mavshack Publ vs. Eniro AB | Mavshack Publ vs. Kancera AB | Mavshack Publ vs. Cortus Energy AB | Mavshack Publ vs. Mantex AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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