Correlation Between MICRONIC MYDATA and CBRE Group

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

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

Diversification Opportunities for MICRONIC MYDATA and CBRE Group

0.32

Correlation Coefficient

MICRONIC MYDATA  CBRE Group

Weak diversification

The 3 months correlation between MICRONIC and CBRE is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MICRONIC MYDATA and CBRE Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBRE Group Class and MICRONIC MYDATA 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 MICRONIC MYDATA are associated (or correlated) with CBRE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBRE Group Class has no effect on the direction of MICRONIC MYDATA i.e., MICRONIC MYDATA and CBRE Group go up and down completely randomly.

Pair Corralation between MICRONIC MYDATA and CBRE Group

Assuming the 90 days trading horizon MICRONIC MYDATA is expected to generate 0.94 times more return on investment than CBRE Group. However, MICRONIC MYDATA is 1.06 times less risky than CBRE Group. It trades about 0.27 of its potential returns per unit of risk. CBRE Group Class is currently generating about 0.17 per unit of risk. If you would invest  3,498  in MICRONIC MYDATA on October 26, 2024 and sell it today you would earn a total of  352.00  from holding MICRONIC MYDATA or generate 10.06% return on investment over 90 days.

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

MICRONIC MYDATA  vs.  CBRE Group Class

MICRONIC MYDATA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MICRONIC MYDATA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, MICRONIC MYDATA is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

CBRE Group Class

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CBRE Group Class are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CBRE Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with MICRONIC MYDATA and CBRE Group

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

The idea behind MICRONIC MYDATA and CBRE Group Class 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.