Correlation Between FM Mattsson and Kakel Max
Can any of the company-specific risk be diversified away by investing in both FM Mattsson and Kakel Max 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 FM Mattsson and Kakel Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FM Mattsson Mora and Kakel Max AB, you can compare the effects of market volatilities on FM Mattsson and Kakel Max 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 FM Mattsson with a short position of Kakel Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Kakel Max.
Diversification Opportunities for FM Mattsson and Kakel Max
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FMM-B and Kakel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Kakel Max AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakel Max AB and FM Mattsson 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 FM Mattsson Mora are associated (or correlated) with Kakel Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakel Max AB has no effect on the direction of FM Mattsson i.e., FM Mattsson and Kakel Max go up and down completely randomly.
Pair Corralation between FM Mattsson and Kakel Max
If you would invest (100.00) in FM Mattsson Mora on September 16, 2024 and sell it today you would earn a total of 100.00 from holding FM Mattsson Mora or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
FM Mattsson Mora vs. Kakel Max AB
Performance |
Timeline |
FM Mattsson Mora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Kakel Max AB |
FM Mattsson and Kakel Max Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FM Mattsson and Kakel Max
The main advantage of trading using opposite FM Mattsson and Kakel Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Kakel Max 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 Kakel Max will offset losses from the drop in Kakel Max's long position.FM Mattsson vs. Nordic Waterproofing Holding | FM Mattsson vs. Bufab Holding AB | FM Mattsson vs. Garo AB | FM Mattsson vs. Inwido AB |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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