Correlation Between Spuntech and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Spuntech and Multi Retail 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 Spuntech and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spuntech and Multi Retail Group, you can compare the effects of market volatilities on Spuntech and Multi Retail 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 Spuntech with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spuntech and Multi Retail.
Diversification Opportunities for Spuntech and Multi Retail
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spuntech and Multi is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Spuntech and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group and Spuntech 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 Spuntech are associated (or correlated) with Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Spuntech i.e., Spuntech and Multi Retail go up and down completely randomly.
Pair Corralation between Spuntech and Multi Retail
Assuming the 90 days trading horizon Spuntech is expected to under-perform the Multi Retail. In addition to that, Spuntech is 1.85 times more volatile than Multi Retail Group. It trades about -0.1 of its total potential returns per unit of risk. Multi Retail Group is currently generating about 0.02 per unit of volatility. If you would invest 103,300 in Multi Retail Group on August 31, 2024 and sell it today you would earn a total of 600.00 from holding Multi Retail Group or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spuntech vs. Multi Retail Group
Performance |
| Timeline |
| Spuntech |
| Multi Retail Group |
Spuntech and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spuntech and Multi Retail
The main advantage of trading using opposite Spuntech and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spuntech position performs unexpectedly, Multi Retail 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 Multi Retail will offset losses from the drop in Multi Retail's long position.| Spuntech vs. Neto ME Holdings | Spuntech vs. Kerur Holdings | Spuntech vs. Salomon A Angel | Spuntech vs. Sano Brunos Enterprises |
| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Israel Land Development |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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