Correlation Between AutoStore Holdings and CodeLab Capital

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Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and CodeLab Capital 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 AutoStore Holdings and CodeLab Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and CodeLab Capital AS, you can compare the effects of market volatilities on AutoStore Holdings and CodeLab Capital 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 AutoStore Holdings with a short position of CodeLab Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and CodeLab Capital.

Diversification Opportunities for AutoStore Holdings and CodeLab Capital

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between AutoStore and CodeLab is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and CodeLab Capital AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CodeLab Capital AS and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with CodeLab Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CodeLab Capital AS has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and CodeLab Capital go up and down completely randomly.

Pair Corralation between AutoStore Holdings and CodeLab Capital

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 0.4 times more return on investment than CodeLab Capital. However, AutoStore Holdings is 2.53 times less risky than CodeLab Capital. It trades about 0.16 of its potential returns per unit of risk. CodeLab Capital AS is currently generating about -0.02 per unit of risk. If you would invest  1,016  in AutoStore Holdings on September 25, 2025 and sell it today you would earn a total of  81.00  from holding AutoStore Holdings or generate 7.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

AutoStore Holdings  vs.  CodeLab Capital AS

 Performance 
       Timeline  
AutoStore Holdings 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, AutoStore Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.
CodeLab Capital AS 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CodeLab Capital AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, CodeLab Capital disclosed solid returns over the last few months and may actually be approaching a breakup point.

AutoStore Holdings and CodeLab Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AutoStore Holdings and CodeLab Capital

The main advantage of trading using opposite AutoStore Holdings and CodeLab Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, CodeLab Capital 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 CodeLab Capital will offset losses from the drop in CodeLab Capital's long position.
The idea behind AutoStore Holdings and CodeLab Capital AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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