Correlation Between Mycronic Publ and Acconeer

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

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

Diversification Opportunities for Mycronic Publ and Acconeer

-0.76

Correlation Coefficient

Mycronic Publ  Acconeer

Pay attention - limited upside

The 3 months correlation between Mycronic and Acconeer is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mycronic publ AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Mycronic Publ 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 Mycronic publ AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Mycronic Publ i.e., Mycronic Publ and Acconeer go up and down completely randomly.

Pair Corralation between Mycronic Publ and Acconeer

Assuming the 90 days trading horizon Mycronic Publ is expected to generate 13.49 times less return on investment than Acconeer. But when comparing it to its historical volatility, Mycronic publ AB is 3.12 times less risky than Acconeer. It trades about 0.06 of its potential returns per unit of risk. Acconeer AB is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  484.00  in Acconeer AB on January 31, 2024 and sell it today you would earn a total of  173.00  from holding Acconeer AB or generate 35.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mycronic publ AB  vs.  Acconeer AB

Mycronic publ AB

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mycronic publ AB are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Mycronic Publ unveiled solid returns over the last few months and may actually be approaching a breakup point.

Acconeer AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acconeer 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 May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mycronic Publ and Acconeer

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

The idea behind Mycronic publ AB and Acconeer 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.