Correlation Between 5Th Planet and Tekna Holding
Can any of the company-specific risk be diversified away by investing in both 5Th Planet and Tekna Holding 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 Tekna Holding 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 Tekna Holding AS, you can compare the effects of market volatilities on 5Th Planet and Tekna Holding 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 Tekna Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5Th Planet and Tekna Holding.
Diversification Opportunities for 5Th Planet and Tekna Holding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5Th and Tekna is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding 5Th Planet Games and Tekna Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekna Holding AS 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 Tekna Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekna Holding AS has no effect on the direction of 5Th Planet i.e., 5Th Planet and Tekna Holding go up and down completely randomly.
Pair Corralation between 5Th Planet and Tekna Holding
Assuming the 90 days trading horizon 5Th Planet Games is expected to generate 0.77 times more return on investment than Tekna Holding. However, 5Th Planet Games is 1.3 times less risky than Tekna Holding. It trades about -0.06 of its potential returns per unit of risk. Tekna Holding AS is currently generating about -0.06 per unit of risk. If you would invest 203.00 in 5Th Planet Games on September 14, 2024 and sell it today you would lose (86.00) from holding 5Th Planet Games or give up 42.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
5Th Planet Games vs. Tekna Holding AS
Performance |
| Timeline |
| 5Th Planet Games |
| Tekna Holding AS |
5Th Planet and Tekna Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5Th Planet and Tekna Holding
The main advantage of trading using opposite 5Th Planet and Tekna Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5Th Planet position performs unexpectedly, Tekna Holding 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 Tekna Holding will offset losses from the drop in Tekna Holding'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 |
| Tekna Holding vs. Vow Green Metals | Tekna Holding vs. Nordic Technology Group | Tekna Holding vs. Aasen Sparebank | Tekna Holding vs. Waste Plastic Upcycling |
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.
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