Correlation Between G2D Investments and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both G2D Investments and MAHLE Metal 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 G2D Investments and MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and MAHLE Metal Leve, you can compare the effects of market volatilities on G2D Investments and MAHLE Metal 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 G2D Investments with a short position of MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and MAHLE Metal.
Diversification Opportunities for G2D Investments and MAHLE Metal
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between G2D and MAHLE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve and G2D Investments 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 G2D Investments are associated (or correlated) with MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of G2D Investments i.e., G2D Investments and MAHLE Metal go up and down completely randomly.
Pair Corralation between G2D Investments and MAHLE Metal
Assuming the 90 days trading horizon G2D Investments is expected to generate 4.66 times more return on investment than MAHLE Metal. However, G2D Investments is 4.66 times more volatile than MAHLE Metal Leve. It trades about 0.28 of its potential returns per unit of risk. MAHLE Metal Leve is currently generating about 0.0 per unit of risk. If you would invest 208.00 in G2D Investments on March 5, 2024 and sell it today you would earn a total of 69.00 from holding G2D Investments or generate 33.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G2D Investments vs. MAHLE Metal Leve
Performance |
Timeline |
G2D Investments |
MAHLE Metal Leve |
G2D Investments and MAHLE Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G2D Investments and MAHLE Metal
The main advantage of trading using opposite G2D Investments and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.G2D Investments vs. Deutsche Bank Aktiengesellschaft | G2D Investments vs. Monster Beverage | G2D Investments vs. Brpr Corporate Offices | G2D Investments vs. Charter Communications |
MAHLE Metal vs. WEG SA | MAHLE Metal vs. Vale SA | MAHLE Metal vs. Itasa Investimentos | MAHLE Metal vs. Ita Unibanco Holding |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |