Correlation Between Cortus Energy and Traton SE
Can any of the company-specific risk be diversified away by investing in both Cortus Energy and Traton SE 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 Cortus Energy and Traton SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cortus Energy AB and Traton SE, you can compare the effects of market volatilities on Cortus Energy and Traton SE 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 Cortus Energy with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cortus Energy and Traton SE.
Diversification Opportunities for Cortus Energy and Traton SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cortus and Traton is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cortus Energy AB and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and Cortus Energy 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 Cortus Energy AB are associated (or correlated) with Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of Cortus Energy i.e., Cortus Energy and Traton SE go up and down completely randomly.
Pair Corralation between Cortus Energy and Traton SE
Assuming the 90 days horizon Cortus Energy AB is expected to generate 6.91 times more return on investment than Traton SE. However, Cortus Energy is 6.91 times more volatile than Traton SE. It trades about 0.0 of its potential returns per unit of risk. Traton SE is currently generating about -0.05 per unit of risk. If you would invest 41.00 in Cortus Energy AB on September 2, 2024 and sell it today you would lose (24.00) from holding Cortus Energy AB or give up 58.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cortus Energy AB vs. Traton SE
Performance |
| Timeline |
| Cortus Energy AB |
| Traton SE |
Cortus Energy and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cortus Energy and Traton SE
The main advantage of trading using opposite Cortus Energy and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cortus Energy position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| Cortus Energy vs. SolTech Energy Sweden | Cortus Energy vs. Minesto AB | Cortus Energy vs. SaltX Technology Holding | Cortus Energy vs. Impact Coatings publ |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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