Correlation Between YARA INTL and Mosaic

Can any of the company-specific risk be diversified away by investing in both YARA INTL and Mosaic 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 YARA INTL and Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YARA INTL ASA and The Mosaic, you can compare the effects of market volatilities on YARA INTL and Mosaic 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 YARA INTL with a short position of Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of YARA INTL and Mosaic.

Diversification Opportunities for YARA INTL and Mosaic

0.0

Correlation Coefficient

YARA INTL  Mosaic

Pay attention - limited upside

The 3 months correlation between YARA and Mosaic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YARA INTL ASA and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic and YARA INTL 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 YARA INTL ASA are associated (or correlated) with Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of YARA INTL i.e., YARA INTL and Mosaic go up and down completely randomly.

Pair Corralation between YARA INTL and Mosaic

If you would invest  2,232  in The Mosaic on September 13, 2024 and sell it today you would earn a total of  199.00  from holding The Mosaic or generate 8.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

YARA INTL ASA  vs.  The Mosaic

YARA INTL ASA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days YARA INTL ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, YARA INTL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mosaic

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Mosaic are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mosaic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with YARA INTL and Mosaic

The main advantage of trading using opposite YARA INTL and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YARA INTL position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's long position.

The idea behind YARA INTL ASA and The Mosaic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.