Correlation Between Mycronic Publ and Heliospectra Publ

Can any of the company-specific risk be diversified away by investing in both Mycronic Publ and Heliospectra Publ 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 Heliospectra Publ 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 Heliospectra publ AB, you can compare the effects of market volatilities on Mycronic Publ and Heliospectra Publ 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 Heliospectra Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycronic Publ and Heliospectra Publ.

Diversification Opportunities for Mycronic Publ and Heliospectra Publ

-0.28

Correlation Coefficient

Mycronic Publ  Heliospectra Publ

Very good diversification

The 3 months correlation between Mycronic and Heliospectra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mycronic publ AB and Heliospectra publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliospectra publ 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 Heliospectra Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliospectra publ has no effect on the direction of Mycronic Publ i.e., Mycronic Publ and Heliospectra Publ go up and down completely randomly.

Pair Corralation between Mycronic Publ and Heliospectra Publ

Assuming the 90 days trading horizon Mycronic publ AB is expected to generate 0.31 times more return on investment than Heliospectra Publ. However, Mycronic publ AB is 3.19 times less risky than Heliospectra Publ. It trades about 0.09 of its potential returns per unit of risk. Heliospectra publ AB is currently generating about -0.02 per unit of risk. If you would invest  18,779  in Mycronic publ AB on April 24, 2025 and sell it today you would earn a total of  1,836  from holding Mycronic publ AB or generate 9.78% return on investment over 90 days.

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

Mycronic publ AB  vs.  Heliospectra publ AB

Mycronic publ AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mycronic publ AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Mycronic Publ may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Heliospectra publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heliospectra publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Mycronic Publ and Heliospectra Publ

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

The idea behind Mycronic publ AB and Heliospectra publ 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.