Correlation Between TRADEDOUBLER and MUTUIONLINE
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and MUTUIONLINE 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 TRADEDOUBLER and MUTUIONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and MUTUIONLINE, you can compare the effects of market volatilities on TRADEDOUBLER and MUTUIONLINE 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 TRADEDOUBLER with a short position of MUTUIONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and MUTUIONLINE.
Diversification Opportunities for TRADEDOUBLER and MUTUIONLINE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRADEDOUBLER and MUTUIONLINE is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and MUTUIONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTUIONLINE and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with MUTUIONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTUIONLINE has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and MUTUIONLINE go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and MUTUIONLINE
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 1.64 times more return on investment than MUTUIONLINE. However, TRADEDOUBLER is 1.64 times more volatile than MUTUIONLINE. It trades about 0.22 of its potential returns per unit of risk. MUTUIONLINE is currently generating about -0.16 per unit of risk. If you would invest 27.00 in TRADEDOUBLER AB SK on October 12, 2024 and sell it today you would earn a total of 3.00 from holding TRADEDOUBLER AB SK or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. MUTUIONLINE
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| MUTUIONLINE |
TRADEDOUBLER and MUTUIONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and MUTUIONLINE
The main advantage of trading using opposite TRADEDOUBLER and MUTUIONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, MUTUIONLINE 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 MUTUIONLINE will offset losses from the drop in MUTUIONLINE's long position.| TRADEDOUBLER vs. COVIVIO HOTELS INH | TRADEDOUBLER vs. THORNEY TECHS LTD | TRADEDOUBLER vs. Digilife Technologies Limited | TRADEDOUBLER vs. Minerals Technologies |
| MUTUIONLINE vs. TRADEDOUBLER AB SK | MUTUIONLINE vs. The Hanover Insurance | MUTUIONLINE vs. SBI Insurance Group | MUTUIONLINE vs. Tradegate AG Wertpapierhandelsbank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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