Correlation Between Strix Group and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both Strix Group and MEITUAN UNSPADR/2B 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 Strix Group and MEITUAN UNSPADR/2B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and MEITUAN UNSPADR2B, you can compare the effects of market volatilities on Strix Group and MEITUAN UNSPADR/2B 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 Strix Group with a short position of MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and MEITUAN UNSPADR/2B.
Diversification Opportunities for Strix Group and MEITUAN UNSPADR/2B
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and MEITUAN is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B and Strix Group 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 Strix Group Plc are associated (or correlated) with MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of Strix Group i.e., Strix Group and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between Strix Group and MEITUAN UNSPADR/2B
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the MEITUAN UNSPADR/2B. But the stock apears to be less risky and, when comparing its historical volatility, Strix Group Plc is 1.16 times less risky than MEITUAN UNSPADR/2B. The stock trades about 0.0 of its potential returns per unit of risk. The MEITUAN UNSPADR2B is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,080 in MEITUAN UNSPADR2B on August 28, 2024 and sell it today you would lose (180.00) from holding MEITUAN UNSPADR2B or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strix Group Plc vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| Strix Group Plc |
| MEITUAN UNSPADR/2B |
Strix Group and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and MEITUAN UNSPADR/2B
The main advantage of trading using opposite Strix Group and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B's long position.| Strix Group vs. Japan Tobacco | Strix Group vs. Transport International Holdings | Strix Group vs. Taiwan Semiconductor Manufacturing | Strix Group vs. UPDATE SOFTWARE |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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