Correlation Between Mantex AB and Beijer Ref

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

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

Diversification Opportunities for Mantex AB and Beijer Ref

-0.17

Correlation Coefficient

Mantex AB  Beijer Ref

Good diversification

The 3 months correlation between Mantex and Beijer is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mantex AB and Beijer Ref AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Ref 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 Beijer Ref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Ref AB has no effect on the direction of Mantex AB i.e., Mantex AB and Beijer Ref go up and down completely randomly.

Pair Corralation between Mantex AB and Beijer Ref

Assuming the 90 days trading horizon Mantex AB is expected to under-perform the Beijer Ref. In addition to that, Mantex AB is 2.31 times more volatile than Beijer Ref AB. It trades about -0.22 of its total potential returns per unit of risk. Beijer Ref AB is currently generating about 0.02 per unit of volatility. If you would invest  16,863  in Beijer Ref AB on September 12, 2024 and sell it today you would earn a total of  277.00  from holding Beijer Ref AB or generate 1.64% return on investment over 90 days.

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

Mantex AB  vs.  Beijer Ref 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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Beijer Ref AB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Beijer Ref AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Beijer Ref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mantex AB and Beijer Ref

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

The idea behind Mantex AB and Beijer Ref 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.