Correlation Between Trip Group and SOEDER SPORTFISKE
Can any of the company-specific risk be diversified away by investing in both Trip Group and SOEDER SPORTFISKE 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 Trip Group and SOEDER SPORTFISKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trip Group Limited and SOEDER SPORTFISKE AB, you can compare the effects of market volatilities on Trip Group and SOEDER SPORTFISKE 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 Trip Group with a short position of SOEDER SPORTFISKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and SOEDER SPORTFISKE.
Diversification Opportunities for Trip Group and SOEDER SPORTFISKE
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trip and SOEDER is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Trip Group Limited and SOEDER SPORTFISKE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOEDER SPORTFISKE and Trip Group 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 Trip Group Limited are associated (or correlated) with SOEDER SPORTFISKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOEDER SPORTFISKE has no effect on the direction of Trip Group i.e., Trip Group and SOEDER SPORTFISKE go up and down completely randomly.
Pair Corralation between Trip Group and SOEDER SPORTFISKE
Assuming the 90 days horizon Trip Group Limited is expected to under-perform the SOEDER SPORTFISKE. In addition to that, Trip Group is 1.52 times more volatile than SOEDER SPORTFISKE AB. It trades about -0.22 of its total potential returns per unit of risk. SOEDER SPORTFISKE AB is currently generating about -0.08 per unit of volatility. If you would invest 221.00 in SOEDER SPORTFISKE AB on October 12, 2024 and sell it today you would lose (4.00) from holding SOEDER SPORTFISKE AB or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trip Group Limited vs. SOEDER SPORTFISKE AB
Performance |
| Timeline |
| Trip Group Limited |
| SOEDER SPORTFISKE |
Trip Group and SOEDER SPORTFISKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trip Group and SOEDER SPORTFISKE
The main advantage of trading using opposite Trip Group and SOEDER SPORTFISKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trip Group position performs unexpectedly, SOEDER SPORTFISKE 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 SOEDER SPORTFISKE will offset losses from the drop in SOEDER SPORTFISKE's long position.| Trip Group vs. UNIVMUSIC GRPADR050 | Trip Group vs. ENVVENO MEDICAL DL 00001 | Trip Group vs. CREO MEDICAL GRP | Trip Group vs. Sekisui Chemical Co |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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