Correlation Between DistIT AB and Mangold Fondkommission

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

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

Diversification Opportunities for DistIT AB and Mangold Fondkommission

-0.71

Correlation Coefficient

DistIT AB  Mangold Fondkommission

Pay attention - limited upside

The 3 months correlation between DistIT and Mangold is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding DistIT AB and Mangold Fondkommission AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangold Fondkommission and DistIT 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 DistIT AB are associated (or correlated) with Mangold Fondkommission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangold Fondkommission has no effect on the direction of DistIT AB i.e., DistIT AB and Mangold Fondkommission go up and down completely randomly.

Pair Corralation between DistIT AB and Mangold Fondkommission

Assuming the 90 days trading horizon DistIT AB is expected to under-perform the Mangold Fondkommission. In addition to that, DistIT AB is 5.67 times more volatile than Mangold Fondkommission AB. It trades about -0.19 of its total potential returns per unit of risk. Mangold Fondkommission AB is currently generating about 0.17 per unit of volatility. If you would invest  160,000  in Mangold Fondkommission AB on April 25, 2025 and sell it today you would earn a total of  31,000  from holding Mangold Fondkommission AB or generate 19.38% return on investment over 90 days.

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

DistIT AB  vs.  Mangold Fondkommission AB

DistIT AB

Risk-Adjusted Performance

Very Weak

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

Mangold Fondkommission

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mangold Fondkommission AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mangold Fondkommission unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DistIT AB and Mangold Fondkommission

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

The idea behind DistIT AB and Mangold Fondkommission 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.