Correlation Between Cell Impact and AAC Clyde
Can any of the company-specific risk be diversified away by investing in both Cell Impact and AAC Clyde 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 Cell Impact and AAC Clyde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Impact AB and AAC Clyde Space, you can compare the effects of market volatilities on Cell Impact and AAC Clyde 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 Cell Impact with a short position of AAC Clyde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Impact and AAC Clyde.
Diversification Opportunities for Cell Impact and AAC Clyde
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cell and AAC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cell Impact AB and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space and Cell Impact 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 Cell Impact AB are associated (or correlated) with AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of Cell Impact i.e., Cell Impact and AAC Clyde go up and down completely randomly.
Pair Corralation between Cell Impact and AAC Clyde
Assuming the 90 days horizon Cell Impact AB is expected to under-perform the AAC Clyde. But the stock apears to be less risky and, when comparing its historical volatility, Cell Impact AB is 1.63 times less risky than AAC Clyde. The stock trades about -0.25 of its potential returns per unit of risk. The AAC Clyde Space is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,540 in AAC Clyde Space on August 30, 2024 and sell it today you would earn a total of 1,065 from holding AAC Clyde Space or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cell Impact AB vs. AAC Clyde Space
Performance |
| Timeline |
| Cell Impact AB |
| AAC Clyde Space |
Cell Impact and AAC Clyde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cell Impact and AAC Clyde
The main advantage of trading using opposite Cell Impact and AAC Clyde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Impact position performs unexpectedly, AAC Clyde 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 AAC Clyde will offset losses from the drop in AAC Clyde's long position.| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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