Correlation Between MapsPeople and Impero AS

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

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

Diversification Opportunities for MapsPeople and Impero AS

0.0

Correlation Coefficient

MapsPeople  Impero AS

Pay attention - limited upside

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

Pair Corralation between MapsPeople and Impero AS

Assuming the 90 days trading horizon MapsPeople AS is expected to under-perform the Impero AS. In addition to that, MapsPeople is 1.22 times more volatile than Impero AS. It trades about -0.05 of its total potential returns per unit of risk. Impero AS is currently generating about 0.06 per unit of volatility. If you would invest  500.00  in Impero AS on September 1, 2024 and sell it today you would earn a total of  75.00  from holding Impero AS or generate 15.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

MapsPeople AS  vs.  Impero AS

MapsPeople AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MapsPeople AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Impero AS

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Impero AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Impero AS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MapsPeople and Impero AS

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

The idea behind MapsPeople AS and Impero AS 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.