Correlation Between Acconeer and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both Acconeer and SaltX Technology 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 SaltX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acconeer AB and SaltX Technology Holding, you can compare the effects of market volatilities on Acconeer and SaltX Technology 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 SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and SaltX Technology.
Diversification Opportunities for Acconeer and SaltX Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acconeer and SaltX is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology Holding 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 SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of Acconeer i.e., Acconeer and SaltX Technology go up and down completely randomly.
Pair Corralation between Acconeer and SaltX Technology
Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the SaltX Technology. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 1.52 times less risky than SaltX Technology. The stock trades about -0.2 of its potential returns per unit of risk. The SaltX Technology Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 341.00 in SaltX Technology Holding on October 25, 2024 and sell it today you would earn a total of 7.00 from holding SaltX Technology Holding or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acconeer AB vs. SaltX Technology Holding
Performance |
| Timeline |
| Acconeer AB |
| SaltX Technology Holding |
Acconeer and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acconeer and SaltX Technology
The main advantage of trading using opposite Acconeer and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, SaltX Technology 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 SaltX Technology will offset losses from the drop in SaltX Technology's long position.| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |