Correlation Between Tellusgruppen and Mantex AB
Can any of the company-specific risk be diversified away by investing in both Tellusgruppen and Mantex AB 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 Tellusgruppen and Mantex AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tellusgruppen AB and Mantex AB, you can compare the effects of market volatilities on Tellusgruppen and Mantex AB 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 Tellusgruppen with a short position of Mantex AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tellusgruppen and Mantex AB.
Diversification Opportunities for Tellusgruppen and Mantex AB
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tellusgruppen and Mantex is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tellusgruppen AB and Mantex AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mantex AB and Tellusgruppen 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 Tellusgruppen AB are associated (or correlated) with Mantex AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mantex AB has no effect on the direction of Tellusgruppen i.e., Tellusgruppen and Mantex AB go up and down completely randomly.
Pair Corralation between Tellusgruppen and Mantex AB
Assuming the 90 days trading horizon Tellusgruppen AB is expected to generate 0.43 times more return on investment than Mantex AB. However, Tellusgruppen AB is 2.33 times less risky than Mantex AB. It trades about -0.1 of its potential returns per unit of risk. Mantex AB is currently generating about -0.28 per unit of risk. If you would invest 780.00 in Tellusgruppen AB on August 31, 2024 and sell it today you would lose (45.00) from holding Tellusgruppen AB or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tellusgruppen AB vs. Mantex AB
Performance |
| Timeline |
| Tellusgruppen AB |
| Mantex AB |
Tellusgruppen and Mantex AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tellusgruppen and Mantex AB
The main advantage of trading using opposite Tellusgruppen and Mantex AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tellusgruppen position performs unexpectedly, Mantex AB 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 Mantex AB will offset losses from the drop in Mantex AB's long position.| Tellusgruppen vs. Inwido AB | Tellusgruppen vs. Dometic Group AB | Tellusgruppen vs. Byggmax Group AB | Tellusgruppen vs. Bravida Holding 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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