Correlation Between Mantex AB and Mavshack Publ

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

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

Diversification Opportunities for Mantex AB and Mavshack Publ

0.88

Correlation Coefficient

Mantex AB  Mavshack Publ

Very poor diversification

The 3 months correlation between Mantex and Mavshack is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mantex AB and Mavshack publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavshack publ 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 Mavshack Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavshack publ AB has no effect on the direction of Mantex AB i.e., Mantex AB and Mavshack Publ go up and down completely randomly.

Pair Corralation between Mantex AB and Mavshack Publ

Assuming the 90 days trading horizon Mantex AB is expected to generate 0.7 times more return on investment than Mavshack Publ. However, Mantex AB is 1.43 times less risky than Mavshack Publ. It trades about -0.23 of its potential returns per unit of risk. Mavshack publ AB is currently generating about -0.25 per unit of risk. If you would invest  8.11  in Mantex AB on September 16, 2024 and sell it today you would lose (4.81) from holding Mantex AB or give up 59.31% of portfolio value over 90 days.

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

Mantex AB  vs.  Mavshack publ 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.

Mavshack publ AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mavshack publ AB 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mantex AB and Mavshack Publ

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

The idea behind Mantex AB and Mavshack publ 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.