Correlation Between Awardit AB and Advenica
Can any of the company-specific risk be diversified away by investing in both Awardit AB and Advenica 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 Awardit AB and Advenica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awardit AB and Advenica AB, you can compare the effects of market volatilities on Awardit AB and Advenica 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 Awardit AB with a short position of Advenica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awardit AB and Advenica.
Diversification Opportunities for Awardit AB and Advenica
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awardit and Advenica is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Awardit AB and Advenica AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advenica AB and Awardit 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 Awardit AB are associated (or correlated) with Advenica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advenica AB has no effect on the direction of Awardit AB i.e., Awardit AB and Advenica go up and down completely randomly.
Pair Corralation between Awardit AB and Advenica
Assuming the 90 days trading horizon Awardit AB is expected to generate 0.6 times more return on investment than Advenica. However, Awardit AB is 1.67 times less risky than Advenica. It trades about 0.01 of its potential returns per unit of risk. Advenica AB is currently generating about -0.16 per unit of risk. If you would invest 12,950 in Awardit AB on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Awardit AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Awardit AB vs. Advenica AB
Performance |
| Timeline |
| Awardit AB |
| Advenica AB |
Awardit AB and Advenica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awardit AB and Advenica
The main advantage of trading using opposite Awardit AB and Advenica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awardit AB position performs unexpectedly, Advenica 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 Advenica will offset losses from the drop in Advenica's long position.| Awardit AB vs. Upsales Technology AB | Awardit AB vs. SaltX Technology Holding | Awardit AB vs. Addtech AB | Awardit AB vs. Raketech Group Holding |
| Advenica vs. BIMobject AB | Advenica vs. Hanza AB | Advenica vs. Alcadon Group AB | Advenica vs. Clavister 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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