Correlation Between Svenska Aerogel and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel 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 Svenska Aerogel and SaltX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Aerogel Holding and SaltX Technology Holding, you can compare the effects of market volatilities on Svenska Aerogel 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 Svenska Aerogel with a short position of SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and SaltX Technology.
Diversification Opportunities for Svenska Aerogel and SaltX Technology
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and SaltX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding 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 Svenska Aerogel 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 Svenska Aerogel Holding 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 Svenska Aerogel i.e., Svenska Aerogel and SaltX Technology go up and down completely randomly.
Pair Corralation between Svenska Aerogel and SaltX Technology
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the SaltX Technology. In addition to that, Svenska Aerogel is 1.81 times more volatile than SaltX Technology Holding. It trades about -0.01 of its total potential returns per unit of risk. SaltX Technology Holding is currently generating about 0.04 per unit of volatility. If you would invest 341.00 in SaltX Technology Holding on August 26, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. SaltX Technology Holding
Performance |
| Timeline |
| Svenska Aerogel Holding |
| SaltX Technology Holding |
Svenska Aerogel and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and SaltX Technology
The main advantage of trading using opposite Svenska Aerogel and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel 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.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space | Svenska Aerogel vs. KABE Group AB |
| SaltX Technology vs. Lagercrantz Group AB | SaltX Technology vs. Addtech AB | SaltX Technology vs. AddLife AB | SaltX Technology vs. Bufab Holding AB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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