Correlation Between Awardit AB and FlexQube
Can any of the company-specific risk be diversified away by investing in both Awardit AB and FlexQube 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 FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awardit AB and FlexQube AB, you can compare the effects of market volatilities on Awardit AB and FlexQube 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 FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awardit AB and FlexQube.
Diversification Opportunities for Awardit AB and FlexQube
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awardit and FlexQube is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Awardit AB and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube 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 FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of Awardit AB i.e., Awardit AB and FlexQube go up and down completely randomly.
Pair Corralation between Awardit AB and FlexQube
Assuming the 90 days trading horizon Awardit AB is expected to generate 0.81 times more return on investment than FlexQube. However, Awardit AB is 1.24 times less risky than FlexQube. It trades about 0.05 of its potential returns per unit of risk. FlexQube AB is currently generating about 0.0 per unit of risk. If you would invest 9,093 in Awardit AB on November 3, 2024 and sell it today you would earn a total of 3,207 from holding Awardit AB or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.75% |
| Values | Daily Returns |
Awardit AB vs. FlexQube AB
Performance |
| Timeline |
| Awardit AB |
| FlexQube AB |
Awardit AB and FlexQube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awardit AB and FlexQube
The main advantage of trading using opposite Awardit AB and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awardit AB position performs unexpectedly, FlexQube 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 FlexQube will offset losses from the drop in FlexQube's long position.| Awardit AB vs. eEducation Albert AB | Awardit AB vs. Lundin Mining | Awardit AB vs. Havsfrun Investment AB | Awardit AB vs. Nordic Asia Investment |
| FlexQube vs. Generic Sweden publ | FlexQube vs. Firefly AB | FlexQube vs. Awardit AB | FlexQube vs. BIMobject 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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