Correlation Between Climeon AB and SolTech Energy
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By analyzing existing cross correlation between Climeon AB and SolTech Energy Sweden, you can compare the effects of market volatilities on Climeon AB and SolTech Energy 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 Climeon AB with a short position of SolTech Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Climeon AB and SolTech Energy.
Diversification Opportunities for Climeon AB and SolTech Energy
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Climeon and SolTech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Climeon AB and SolTech Energy Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolTech Energy Sweden and Climeon 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 Climeon AB are associated (or correlated) with SolTech Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolTech Energy Sweden has no effect on the direction of Climeon AB i.e., Climeon AB and SolTech Energy go up and down completely randomly.
Pair Corralation between Climeon AB and SolTech Energy
Assuming the 90 days trading horizon Climeon AB is expected to under-perform the SolTech Energy. In addition to that, Climeon AB is 1.24 times more volatile than SolTech Energy Sweden. It trades about -0.14 of its total potential returns per unit of risk. SolTech Energy Sweden is currently generating about -0.15 per unit of volatility. If you would invest 456.00 in SolTech Energy Sweden on August 29, 2024 and sell it today you would lose (240.00) from holding SolTech Energy Sweden or give up 52.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Climeon AB vs. SolTech Energy Sweden
Performance |
| Timeline |
| Climeon AB |
| SolTech Energy Sweden |
Climeon AB and SolTech Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Climeon AB and SolTech Energy
The main advantage of trading using opposite Climeon AB and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Climeon AB position performs unexpectedly, SolTech Energy 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 SolTech Energy will offset losses from the drop in SolTech Energy's long position.| Climeon AB vs. Minesto AB | Climeon AB vs. SolTech Energy Sweden | Climeon AB vs. Arise Windpower AB | Climeon AB vs. Oncopeptides AB |
| SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Sinch AB | SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Powercell Sweden |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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