Correlation Between TRADEDOUBLER and Mhlbauer Holding

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

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

Diversification Opportunities for TRADEDOUBLER and Mhlbauer Holding

-0.11

Correlation Coefficient

TRADEDOUBLER  Mhlbauer Holding

Good diversification

The 3 months correlation between TRADEDOUBLER and Mhlbauer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Mhlbauer Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mhlbauer Holding and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with Mhlbauer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mhlbauer Holding has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and Mhlbauer Holding go up and down completely randomly.

Pair Corralation between TRADEDOUBLER and Mhlbauer Holding

Assuming the 90 days horizon TRADEDOUBLER is expected to generate 2.74 times less return on investment than Mhlbauer Holding. In addition to that, TRADEDOUBLER is 1.59 times more volatile than Mhlbauer Holding AG. It trades about 0.05 of its total potential returns per unit of risk. Mhlbauer Holding AG is currently generating about 0.21 per unit of volatility. If you would invest  3,680  in Mhlbauer Holding AG on October 26, 2024 and sell it today you would earn a total of  520.00  from holding Mhlbauer Holding AG or generate 14.13% return on investment over 90 days.

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

TRADEDOUBLER AB SK  vs.  Mhlbauer Holding AG

TRADEDOUBLER AB SK

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TRADEDOUBLER AB SK are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRADEDOUBLER may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Mhlbauer Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mhlbauer Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Mhlbauer Holding 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 TRADEDOUBLER and Mhlbauer Holding

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

The idea behind TRADEDOUBLER AB SK and Mhlbauer Holding AG 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.