Correlation Between Storage Drop and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Storage Drop 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 Storage Drop and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storage Drop Storage and Multi Retail Group, you can compare the effects of market volatilities on Storage Drop 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 Storage Drop with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storage Drop and Multi Retail.
Diversification Opportunities for Storage Drop and Multi Retail
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Storage and Multi is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Storage Drop Storage 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 Storage Drop 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 Storage Drop Storage 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 Storage Drop i.e., Storage Drop and Multi Retail go up and down completely randomly.
Pair Corralation between Storage Drop and Multi Retail
Assuming the 90 days trading horizon Storage Drop Storage is expected to under-perform the Multi Retail. In addition to that, Storage Drop is 1.0 times more volatile than Multi Retail Group. It trades about -0.07 of its total potential returns per unit of risk. Multi Retail Group is currently generating about 0.24 per unit of volatility. If you would invest 30,390 in Multi Retail Group on August 27, 2024 and sell it today you would earn a total of 81,710 from holding Multi Retail Group or generate 268.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storage Drop Storage vs. Multi Retail Group
Performance |
| Timeline |
| Storage Drop Storage |
| Multi Retail Group |
Storage Drop and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storage Drop and Multi Retail
The main advantage of trading using opposite Storage Drop and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storage Drop 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.| Storage Drop vs. Bio Meat Foodtech | Storage Drop vs. Clal Insurance Enterprises | Storage Drop vs. Payment Financial Technologies | Storage Drop vs. Sofwave Medical |
| Multi Retail vs. Ormat Technologies | Multi Retail vs. B Communications | Multi Retail vs. Technoplus Ventures | Multi Retail vs. Batm Advanced Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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