Correlation Between Mantex AB and Duni AB

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

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

Diversification Opportunities for Mantex AB and Duni AB

0.87

Correlation Coefficient

Mantex AB  Duni AB

Very poor diversification

The 3 months correlation between Mantex and Duni is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mantex AB and Duni AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duni AB and Mantex AB 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 Mantex AB are associated (or correlated) with Duni AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duni AB has no effect on the direction of Mantex AB i.e., Mantex AB and Duni AB go up and down completely randomly.

Pair Corralation between Mantex AB and Duni AB

Assuming the 90 days trading horizon Mantex AB is expected to under-perform the Duni AB. In addition to that, Mantex AB is 5.56 times more volatile than Duni AB. It trades about -0.13 of its total potential returns per unit of risk. Duni AB is currently generating about -0.06 per unit of volatility. If you would invest  9,610  in Duni AB on October 10, 2024 and sell it today you would lose (260.00) from holding Duni AB or give up 2.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Mantex AB  vs.  Duni AB

Mantex AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mantex AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Duni AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duni AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Mantex AB and Duni AB

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

The idea behind Mantex AB and Duni AB 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.