Correlation Between PACIFIC ONLINE and Electrolux Professional
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and Electrolux Professional 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 PACIFIC ONLINE and Electrolux Professional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and Electrolux Professional AB, you can compare the effects of market volatilities on PACIFIC ONLINE and Electrolux Professional 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 PACIFIC ONLINE with a short position of Electrolux Professional. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and Electrolux Professional.
Diversification Opportunities for PACIFIC ONLINE and Electrolux Professional
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and Electrolux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and Electrolux Professional AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrolux Professional and PACIFIC ONLINE 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 PACIFIC ONLINE are associated (or correlated) with Electrolux Professional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrolux Professional has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and Electrolux Professional go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and Electrolux Professional
If you would invest 593.00 in Electrolux Professional AB on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Electrolux Professional AB or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PACIFIC ONLINE vs. Electrolux Professional AB
Performance |
| Timeline |
| PACIFIC ONLINE |
| Electrolux Professional |
PACIFIC ONLINE and Electrolux Professional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and Electrolux Professional
The main advantage of trading using opposite PACIFIC ONLINE and Electrolux Professional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, Electrolux Professional 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 Electrolux Professional will offset losses from the drop in Electrolux Professional's long position.| PACIFIC ONLINE vs. NetSol Technologies | PACIFIC ONLINE vs. Singapore Telecommunications Limited | PACIFIC ONLINE vs. SOFI TECHNOLOGIES | PACIFIC ONLINE vs. THORNEY TECHS LTD |
| Electrolux Professional vs. PACIFIC ONLINE | Electrolux Professional vs. SLR Investment Corp | Electrolux Professional vs. AOYAMA TRADING | Electrolux Professional vs. CARSALESCOM |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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