Correlation Between ETHetc ETC and Multi Units
Can any of the company-specific risk be diversified away by investing in both ETHetc ETC and Multi Units 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 ETHetc ETC and Multi Units into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETHetc ETC and Multi Units Luxembourg, you can compare the effects of market volatilities on ETHetc ETC and Multi Units 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 ETHetc ETC with a short position of Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETHetc ETC and Multi Units.
Diversification Opportunities for ETHetc ETC and Multi Units
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ETHetc and Multi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ETHetc ETC and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg and ETHetc ETC 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 ETHetc ETC are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of ETHetc ETC i.e., ETHetc ETC and Multi Units go up and down completely randomly.
Pair Corralation between ETHetc ETC and Multi Units
Assuming the 90 days trading horizon ETHetc ETC is expected to generate 6.84 times more return on investment than Multi Units. However, ETHetc ETC is 6.84 times more volatile than Multi Units Luxembourg. It trades about 0.05 of its potential returns per unit of risk. Multi Units Luxembourg is currently generating about 0.08 per unit of risk. If you would invest 2,993 in ETHetc ETC on September 22, 2024 and sell it today you would earn a total of 78.00 from holding ETHetc ETC or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ETHetc ETC vs. Multi Units Luxembourg
Performance |
| Timeline |
| ETHetc ETC |
| Multi Units Luxembourg |
ETHetc ETC and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETHetc ETC and Multi Units
The main advantage of trading using opposite ETHetc ETC and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETHetc ETC position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.| ETHetc ETC vs. Amundi Index Solutions | ETHetc ETC vs. Multi Units Luxembourg | ETHetc ETC vs. iShares Digital Entertainment | ETHetc ETC vs. Amundi Index Solutions |
| Multi Units vs. Lyxor UCITS Japan | Multi Units vs. Lyxor UCITS Japan | Multi Units vs. Lyxor UCITS Stoxx | Multi Units vs. Amundi CAC 40 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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