Correlation Between Sato Office and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Sato Office and Mytilineos 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 Sato Office and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sato office and and Mytilineos SA, you can compare the effects of market volatilities on Sato Office and Mytilineos 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 Sato Office with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sato Office and Mytilineos.
Diversification Opportunities for Sato Office and Mytilineos
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sato and Mytilineos is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sato office and and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Sato Office 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 Sato office and are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Sato Office i.e., Sato Office and Mytilineos go up and down completely randomly.
Pair Corralation between Sato Office and Mytilineos
Assuming the 90 days trading horizon Sato office and is expected to generate 1.18 times more return on investment than Mytilineos. However, Sato Office is 1.18 times more volatile than Mytilineos SA. It trades about 0.21 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.29 per unit of risk. If you would invest 3.15 in Sato office and on March 21, 2024 and sell it today you would earn a total of 0.25 from holding Sato office and or generate 7.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sato office and vs. Mytilineos SA
Performance |
Timeline |
Sato office |
Mytilineos SA |
Sato Office and Mytilineos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sato Office and Mytilineos
The main advantage of trading using opposite Sato Office and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sato Office position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.Sato Office vs. National Bank of | Sato Office vs. Dimand SA | Sato Office vs. Lampsa Hellenic Hotels | Sato Office vs. Elinoil Hellenic Petroleum |
Mytilineos vs. National Bank of | Mytilineos vs. Dimand SA | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. Elinoil Hellenic Petroleum |
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.
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