Correlation Between AQ Group and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both AQ Group and JonDeTech Sensors 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 AQ Group and JonDeTech Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AQ Group AB and JonDeTech Sensors, you can compare the effects of market volatilities on AQ Group and JonDeTech Sensors 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 AQ Group with a short position of JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of AQ Group and JonDeTech Sensors.
Diversification Opportunities for AQ Group and JonDeTech Sensors
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AQ Group and JonDeTech is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AQ Group AB and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors and AQ Group 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 AQ Group AB are associated (or correlated) with JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of AQ Group i.e., AQ Group and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between AQ Group and JonDeTech Sensors
Assuming the 90 days horizon AQ Group AB is expected to generate 0.45 times more return on investment than JonDeTech Sensors. However, AQ Group AB is 2.2 times less risky than JonDeTech Sensors. It trades about 0.08 of its potential returns per unit of risk. JonDeTech Sensors is currently generating about -0.11 per unit of risk. If you would invest 13,658 in AQ Group AB on August 27, 2024 and sell it today you would earn a total of 446.00 from holding AQ Group AB or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AQ Group AB vs. JonDeTech Sensors
Performance |
| Timeline |
| AQ Group AB |
| JonDeTech Sensors |
AQ Group and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AQ Group and JonDeTech Sensors
The main advantage of trading using opposite AQ Group and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AQ Group position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.| AQ Group vs. Inwido AB | AQ Group vs. Bufab Holding AB | AQ Group vs. Beijer Alma AB | AQ Group vs. Addtech AB |
| JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB | JonDeTech Sensors vs. IAR Systems Group |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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