Correlation Between Acconeer and GomSpace Group
Can any of the company-specific risk be diversified away by investing in both Acconeer and GomSpace Group 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 Acconeer and GomSpace Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acconeer AB and GomSpace Group AB, you can compare the effects of market volatilities on Acconeer and GomSpace Group 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 Acconeer with a short position of GomSpace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and GomSpace Group.
Diversification Opportunities for Acconeer and GomSpace Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acconeer and GomSpace is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and GomSpace Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GomSpace Group AB and Acconeer 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 Acconeer AB are associated (or correlated) with GomSpace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GomSpace Group AB has no effect on the direction of Acconeer i.e., Acconeer and GomSpace Group go up and down completely randomly.
Pair Corralation between Acconeer and GomSpace Group
Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the GomSpace Group. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 1.25 times less risky than GomSpace Group. The stock trades about -0.2 of its potential returns per unit of risk. The GomSpace Group AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 407.00 in GomSpace Group AB on October 25, 2024 and sell it today you would lose (8.00) from holding GomSpace Group AB or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acconeer AB vs. GomSpace Group AB
Performance |
| Timeline |
| Acconeer AB |
| GomSpace Group AB |
Acconeer and GomSpace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acconeer and GomSpace Group
The main advantage of trading using opposite Acconeer and GomSpace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, GomSpace Group 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 GomSpace Group will offset losses from the drop in GomSpace Group's long position.| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma AS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |