Correlation Between Zaptec AS and Mendus AB
Can any of the company-specific risk be diversified away by investing in both Zaptec AS and Mendus 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 Zaptec AS and Mendus AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zaptec AS and Mendus AB, you can compare the effects of market volatilities on Zaptec AS and Mendus 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 Zaptec AS with a short position of Mendus AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zaptec AS and Mendus AB.
Diversification Opportunities for Zaptec AS and Mendus AB
Good diversification
The 3 months correlation between Zaptec and Mendus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zaptec AS and Mendus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mendus AB and Zaptec AS 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 Zaptec AS are associated (or correlated) with Mendus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mendus AB has no effect on the direction of Zaptec AS i.e., Zaptec AS and Mendus AB go up and down completely randomly.
Pair Corralation between Zaptec AS and Mendus AB
Assuming the 90 days trading horizon Zaptec AS is expected to under-perform the Mendus AB. In addition to that, Zaptec AS is 1.78 times more volatile than Mendus AB. It trades about -0.13 of its total potential returns per unit of risk. Mendus AB is currently generating about -0.19 per unit of volatility. If you would invest 954.00 in Mendus AB on August 26, 2024 and sell it today you would lose (122.00) from holding Mendus AB or give up 12.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zaptec AS vs. Mendus AB
Performance |
| Timeline |
| Zaptec AS |
| Mendus AB |
Zaptec AS and Mendus AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zaptec AS and Mendus AB
The main advantage of trading using opposite Zaptec AS and Mendus AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zaptec AS position performs unexpectedly, Mendus 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 Mendus AB will offset losses from the drop in Mendus AB's long position.| Zaptec AS vs. Kongsberg Automotive Holding | Zaptec AS vs. Bavarian Nordic | Zaptec AS vs. Everfuel AS | Zaptec AS vs. Elkem ASA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |