Correlation Between Mitesco and NetraMark Holdings

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

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

Diversification Opportunities for Mitesco and NetraMark Holdings

0.11

Correlation Coefficient

Mitesco  NetraMark Holdings

Average diversification

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

Pair Corralation between Mitesco and NetraMark Holdings

Given the investment horizon of 90 days Mitesco is expected to generate 3.16 times more return on investment than NetraMark Holdings. However, Mitesco is 3.16 times more volatile than NetraMark Holdings. It trades about 0.15 of its potential returns per unit of risk. NetraMark Holdings is currently generating about 0.33 per unit of risk. 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	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Mitesco  vs.  NetraMark Holdings

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.

NetraMark Holdings

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NetraMark Holdings are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, NetraMark Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mitesco and NetraMark Holdings

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

The idea behind Mitesco and NetraMark Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.