Correlation Between Orderyoyo and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Orderyoyo and MapsPeople 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 Orderyoyo and MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orderyoyo AS and MapsPeople AS, you can compare the effects of market volatilities on Orderyoyo and MapsPeople 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 Orderyoyo with a short position of MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orderyoyo and MapsPeople.
Diversification Opportunities for Orderyoyo and MapsPeople
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orderyoyo and MapsPeople is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Orderyoyo AS and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS and Orderyoyo 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 Orderyoyo AS are associated (or correlated) with MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Orderyoyo i.e., Orderyoyo and MapsPeople go up and down completely randomly.
Pair Corralation between Orderyoyo and MapsPeople
Assuming the 90 days trading horizon Orderyoyo is expected to generate 5.97 times less return on investment than MapsPeople. But when comparing it to its historical volatility, Orderyoyo AS is 3.35 times less risky than MapsPeople. It trades about 0.02 of its potential returns per unit of risk. MapsPeople AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 152.00 in MapsPeople AS on August 25, 2024 and sell it today you would lose (22.00) from holding MapsPeople AS or give up 14.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orderyoyo AS vs. MapsPeople AS
Performance |
| Timeline |
| Orderyoyo AS |
| MapsPeople AS |
Orderyoyo and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orderyoyo and MapsPeople
The main advantage of trading using opposite Orderyoyo and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orderyoyo position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople's long position.The idea behind Orderyoyo AS and MapsPeople AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MapsPeople vs. Konsolidator AS | MapsPeople vs. Sparinvest INDEX Globale | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS |
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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