Correlation Between SKAGEN M2 and Sprint

By analyzing existing cross correlation between SKAGEN M2 A and Sprint you can compare the effects of market volatilities on SKAGEN M2 and Sprint 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 SKAGEN M2 with a short position of Sprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKAGEN M2 and Sprint.

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Can any of the company-specific risk be diversified away by investing in both SKAGEN M2 and Sprint at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing SKAGEN M2 and Sprint into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for SKAGEN M2 and Sprint

-0.03
Correlation
SM
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Good diversification

The 3 months correlation between SKAGEN and Sprint is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SKAGEN M2 A and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint and SKAGEN M2 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 SKAGEN M2 A are associated (or correlated) with Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of SKAGEN M2 i.e. SKAGEN M2 and Sprint go up and down completely randomly.

Pair Corralation between SKAGEN M2 and Sprint

Assuming 30 trading days horizon, SKAGEN M2 A is expected to under-perform the Sprint. In addition to that, SKAGEN M2 is 2.02 times more volatile than Sprint. It trades about -0.17 of its total potential returns per unit of risk. Sprint is currently generating about -0.03 per unit of volatility. If you would invest  982.00  in Sprint on April 24, 2020 and sell it today you would lose (120.00)  from holding Sprint or give up 12.22% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy25.4%
ValuesDaily Returns

SKAGEN M2 A  vs.  Sprint Corp.

 Performance (%) 
      Timeline 
SKAGEN M2 A 
00

SKAGEN M2 Risk-Adjusted Performance

Over the last 30 days SKAGEN M2 A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2020. The current disturbance may also be a sign of long term up-swing for the company investors.
Sprint 
00

Sprint Risk-Adjusted Performance

Over the last 30 days Sprint has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of latest fragile performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long running gains for enterprise management.

SKAGEN M2 and Sprint Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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