Correlation Between Awardit AB and Raketech Group
Can any of the company-specific risk be diversified away by investing in both Awardit AB and Raketech Group 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 Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awardit AB and Raketech Group Holding, you can compare the effects of market volatilities on Awardit AB and Raketech Group 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 Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awardit AB and Raketech Group.
Diversification Opportunities for Awardit AB and Raketech Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Awardit and Raketech is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Awardit AB and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding 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 Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Awardit AB i.e., Awardit AB and Raketech Group go up and down completely randomly.
Pair Corralation between Awardit AB and Raketech Group
Assuming the 90 days trading horizon Awardit AB is expected to generate 1.03 times more return on investment than Raketech Group. However, Awardit AB is 1.03 times more volatile than Raketech Group Holding. It trades about 0.05 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.17 per unit of risk. If you would invest 9,299 in Awardit AB on November 8, 2024 and sell it today you would earn a total of 2,851 from holding Awardit AB or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Awardit AB vs. Raketech Group Holding
Performance |
| Timeline |
| Awardit AB |
| Raketech Group Holding |
Awardit AB and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awardit AB and Raketech Group
The main advantage of trading using opposite Awardit AB and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awardit AB position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group's long position.| Awardit AB vs. Havsfrun Investment AB | Awardit AB vs. Lundin Mining | Awardit AB vs. Nordea Bank Abp | Awardit AB vs. Avanza Bank Holding |
| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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