Correlation Between Mitesco and Achiko AG

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

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

Diversification Opportunities for Mitesco and Achiko AG

0.0

Correlation Coefficient

Mitesco  Achiko AG

Pay attention - limited upside

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

Pair Corralation between Mitesco and Achiko AG

If you would invest  29.00  in Mitesco on September 14, 2024 and sell it today you would earn a total of  11.00  from holding Mitesco or generate 37.93% return on investment over 90 days.

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

Mitesco  vs.  Achiko AG

Mitesco

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mitesco are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Mitesco demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Achiko AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Achiko AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Achiko AG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mitesco and Achiko AG

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

The idea behind Mitesco and Achiko 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.