Correlation Between Multilaser Industrial and Karsten SA

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

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

Diversification Opportunities for Multilaser Industrial and Karsten SA

0.0

Correlation Coefficient

Multilaser Industrial  Karsten SA

Pay attention - limited upside

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

Pair Corralation between Multilaser Industrial and Karsten SA

If you would invest (100.00) in Karsten SA on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Karsten SA 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

Multilaser Industrial SA  vs.  Karsten SA

Multilaser Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multilaser Industrial SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Karsten SA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Karsten SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Karsten SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Multilaser Industrial and Karsten SA

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

The idea behind Multilaser Industrial SA and Karsten SA 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.