Correlation Between AroCell AB and Softronic
Can any of the company-specific risk be diversified away by investing in both AroCell AB and Softronic 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 AroCell AB and Softronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AroCell AB and Softronic AB, you can compare the effects of market volatilities on AroCell AB and Softronic 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 AroCell AB with a short position of Softronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AroCell AB and Softronic.
Diversification Opportunities for AroCell AB and Softronic
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AroCell and Softronic is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding AroCell AB and Softronic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softronic AB and AroCell AB 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 AroCell AB are associated (or correlated) with Softronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softronic AB has no effect on the direction of AroCell AB i.e., AroCell AB and Softronic go up and down completely randomly.
Pair Corralation between AroCell AB and Softronic
Assuming the 90 days trading horizon AroCell AB is expected to under-perform the Softronic. In addition to that, AroCell AB is 1.94 times more volatile than Softronic AB. It trades about 0.0 of its total potential returns per unit of risk. Softronic AB is currently generating about 0.03 per unit of volatility. If you would invest 2,039 in Softronic AB on September 4, 2024 and sell it today you would earn a total of 361.00 from holding Softronic AB or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AroCell AB vs. Softronic AB
Performance |
| Timeline |
| AroCell AB |
| Softronic AB |
AroCell AB and Softronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AroCell AB and Softronic
The main advantage of trading using opposite AroCell AB and Softronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AroCell AB position performs unexpectedly, Softronic 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 Softronic will offset losses from the drop in Softronic's long position.| AroCell AB vs. Smart Eye AB | AroCell AB vs. Genovis AB | AroCell AB vs. Kancera AB | AroCell AB vs. Zignsec AB |
| Softronic vs. Svenska Aerogel Holding | Softronic vs. Acarix AS | Softronic vs. Clean Motion AB | Softronic vs. AroCell 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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