Correlation Between Schibsted ASA and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both Schibsted ASA and MYFAIR GOLD 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 Schibsted ASA and MYFAIR GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schibsted ASA B and MYFAIR GOLD P, you can compare the effects of market volatilities on Schibsted ASA and MYFAIR GOLD 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 Schibsted ASA with a short position of MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schibsted ASA and MYFAIR GOLD.
Diversification Opportunities for Schibsted ASA and MYFAIR GOLD
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Schibsted and MYFAIR is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Schibsted ASA B and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P and Schibsted ASA 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 Schibsted ASA B are associated (or correlated) with MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of Schibsted ASA i.e., Schibsted ASA and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between Schibsted ASA and MYFAIR GOLD
Assuming the 90 days trading horizon Schibsted ASA B is expected to under-perform the MYFAIR GOLD. In addition to that, Schibsted ASA is 1.07 times more volatile than MYFAIR GOLD P. It trades about -0.36 of its total potential returns per unit of risk. MYFAIR GOLD P is currently generating about -0.02 per unit of volatility. If you would invest 115.00 in MYFAIR GOLD P on October 18, 2024 and sell it today you would lose (1.00) from holding MYFAIR GOLD P or give up 0.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Schibsted ASA B vs. MYFAIR GOLD P
Performance |
Timeline |
Schibsted ASA B |
MYFAIR GOLD P |
Schibsted ASA and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Schibsted ASA and MYFAIR GOLD
The main advantage of trading using opposite Schibsted ASA and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schibsted ASA position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD's long position.Schibsted ASA vs. DATAGROUP SE | Schibsted ASA vs. MICRONIC MYDATA | Schibsted ASA vs. Datadog | Schibsted ASA vs. DATA MODUL |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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