Correlation Between 5Th Planet and Saga Pure
Can any of the company-specific risk be diversified away by investing in both 5Th Planet and Saga Pure 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 5Th Planet and Saga Pure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 5Th Planet Games and Saga Pure ASA, you can compare the effects of market volatilities on 5Th Planet and Saga Pure 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 5Th Planet with a short position of Saga Pure. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5Th Planet and Saga Pure.
Diversification Opportunities for 5Th Planet and Saga Pure
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5Th and Saga is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding 5Th Planet Games and Saga Pure ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saga Pure ASA and 5Th Planet 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 5Th Planet Games are associated (or correlated) with Saga Pure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saga Pure ASA has no effect on the direction of 5Th Planet i.e., 5Th Planet and Saga Pure go up and down completely randomly.
Pair Corralation between 5Th Planet and Saga Pure
Assuming the 90 days trading horizon 5Th Planet Games is expected to generate 3.45 times more return on investment than Saga Pure. However, 5Th Planet is 3.45 times more volatile than Saga Pure ASA. It trades about 0.12 of its potential returns per unit of risk. Saga Pure ASA is currently generating about -0.06 per unit of risk. If you would invest 108.00 in 5Th Planet Games on September 1, 2024 and sell it today you would earn a total of 9.00 from holding 5Th Planet Games or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
5Th Planet Games vs. Saga Pure ASA
Performance |
| Timeline |
| 5Th Planet Games |
| Saga Pure ASA |
5Th Planet and Saga Pure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5Th Planet and Saga Pure
The main advantage of trading using opposite 5Th Planet and Saga Pure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5Th Planet position performs unexpectedly, Saga Pure 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 Saga Pure will offset losses from the drop in Saga Pure's long position.| 5Th Planet vs. Solstad Offsho | 5Th Planet vs. Saga Pure ASA | 5Th Planet vs. REC Silicon ASA | 5Th Planet vs. Kongsberg Automotive Holding |
| Saga Pure vs. Aker Horizons AS | Saga Pure vs. REC Silicon ASA | Saga Pure vs. Kongsberg Automotive Holding | Saga Pure vs. Aker Carbon Capture |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |