Correlation Between Mangold Fondkommission and AB Volvo
Can any of the company-specific risk be diversified away by investing in both Mangold Fondkommission and AB Volvo 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 Mangold Fondkommission and AB Volvo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mangold Fondkommission AB and AB Volvo, you can compare the effects of market volatilities on Mangold Fondkommission and AB Volvo 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 Mangold Fondkommission with a short position of AB Volvo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangold Fondkommission and AB Volvo.
Diversification Opportunities for Mangold Fondkommission and AB Volvo
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mangold and VOLV-A is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mangold Fondkommission AB and AB Volvo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Volvo and Mangold Fondkommission 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 Mangold Fondkommission AB are associated (or correlated) with AB Volvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Volvo has no effect on the direction of Mangold Fondkommission i.e., Mangold Fondkommission and AB Volvo go up and down completely randomly.
Pair Corralation between Mangold Fondkommission and AB Volvo
Assuming the 90 days trading horizon Mangold Fondkommission AB is expected to generate 0.71 times more return on investment than AB Volvo. However, Mangold Fondkommission AB is 1.41 times less risky than AB Volvo. It trades about -0.03 of its potential returns per unit of risk. AB Volvo is currently generating about -0.21 per unit of risk. If you would invest 252,000 in Mangold Fondkommission AB on March 28, 2024 and sell it today you would lose (2,000) from holding Mangold Fondkommission AB or give up 0.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mangold Fondkommission AB vs. AB Volvo
Performance |
Timeline |
Mangold Fondkommission |
AB Volvo |
Mangold Fondkommission and AB Volvo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mangold Fondkommission and AB Volvo
The main advantage of trading using opposite Mangold Fondkommission and AB Volvo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangold Fondkommission position performs unexpectedly, AB Volvo 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 AB Volvo will offset losses from the drop in AB Volvo's long position.Mangold Fondkommission vs. NAXS Nordic Access | Mangold Fondkommission vs. FormPipe Software AB | Mangold Fondkommission vs. Novotek AB | Mangold Fondkommission vs. Hitech Development Wireless |
AB Volvo vs. Investor AB ser | AB Volvo vs. Sandvik AB | AB Volvo vs. Svenska Handelsbanken AB | AB Volvo vs. Atlas Copco AB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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