Correlation Between USWE SPORTS and SPECTRAL MEDICAL
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and SPECTRAL MEDICAL 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 USWE SPORTS and SPECTRAL MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and SPECTRAL MEDICAL, you can compare the effects of market volatilities on USWE SPORTS and SPECTRAL MEDICAL 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 USWE SPORTS with a short position of SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and SPECTRAL MEDICAL.
Diversification Opportunities for USWE SPORTS and SPECTRAL MEDICAL
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between USWE and SPECTRAL is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL MEDICAL and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and SPECTRAL MEDICAL go up and down completely randomly.
Pair Corralation between USWE SPORTS and SPECTRAL MEDICAL
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 0.71 times more return on investment than SPECTRAL MEDICAL. However, USWE SPORTS AB is 1.42 times less risky than SPECTRAL MEDICAL. It trades about 0.31 of its potential returns per unit of risk. SPECTRAL MEDICAL is currently generating about 0.06 per unit of risk. If you would invest 74.00 in USWE SPORTS AB on October 29, 2024 and sell it today you would earn a total of 11.00 from holding USWE SPORTS AB or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. SPECTRAL MEDICAL
Performance |
| Timeline |
| USWE SPORTS AB |
| SPECTRAL MEDICAL |
USWE SPORTS and SPECTRAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and SPECTRAL MEDICAL
The main advantage of trading using opposite USWE SPORTS and SPECTRAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, SPECTRAL MEDICAL 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 SPECTRAL MEDICAL will offset losses from the drop in SPECTRAL MEDICAL's long position.| USWE SPORTS vs. CeoTronics AG | USWE SPORTS vs. PLAYTECH | USWE SPORTS vs. Jupiter Fund Management | USWE SPORTS vs. Gaming and Leisure |
| SPECTRAL MEDICAL vs. TOREX SEMICONDUCTOR LTD | SPECTRAL MEDICAL vs. Elmos Semiconductor SE | SPECTRAL MEDICAL vs. Nordic Semiconductor ASA | SPECTRAL MEDICAL vs. Aluminum of |
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.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |