Correlation Between Performance Technologies and Mytilineos

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Can any of the company-specific risk be diversified away by investing in both Performance Technologies and Mytilineos 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 Performance Technologies and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Technologies SA and Mytilineos SA, you can compare the effects of market volatilities on Performance Technologies and Mytilineos 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 Performance Technologies with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Technologies and Mytilineos.

Diversification Opportunities for Performance Technologies and Mytilineos

0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between Performance and Mytilineos is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Performance Technologies SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Performance Technologies 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 Performance Technologies SA are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Performance Technologies i.e., Performance Technologies and Mytilineos go up and down completely randomly.

Pair Corralation between Performance Technologies and Mytilineos

Assuming the 90 days trading horizon Performance Technologies SA is expected to generate 1.34 times more return on investment than Mytilineos. However, Performance Technologies is 1.34 times more volatile than Mytilineos SA. It trades about 0.15 of its potential returns per unit of risk. Mytilineos SA is currently generating about 0.16 per unit of risk. If you would invest  544.00  in Performance Technologies SA on May 2, 2025 and sell it today you would earn a total of  107.00  from holding Performance Technologies SA or generate 19.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Performance Technologies SA  vs.  Mytilineos SA

 Performance 
       Timeline  
Performance Technologies 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Performance Technologies SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Performance Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.
Mytilineos SA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mytilineos SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Mytilineos sustained solid returns over the last few months and may actually be approaching a breakup point.

Performance Technologies and Mytilineos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Performance Technologies and Mytilineos

The main advantage of trading using opposite Performance Technologies and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Technologies position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.
The idea behind Performance Technologies SA and Mytilineos SA 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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