Correlation Between Crexendo and VALTECH SE
Can any of the company-specific risk be diversified away by investing in both Crexendo and VALTECH 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 Crexendo and VALTECH SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crexendo and VALTECH SE, you can compare the effects of market volatilities on Crexendo and VALTECH 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 Crexendo with a short position of VALTECH SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crexendo and VALTECH SE.
Diversification Opportunities for Crexendo and VALTECH SE
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crexendo and VALTECH is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Crexendo and VALTECH SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VALTECH SE and Crexendo 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 Crexendo are associated (or correlated) with VALTECH SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VALTECH SE has no effect on the direction of Crexendo i.e., Crexendo and VALTECH SE go up and down completely randomly.
Pair Corralation between Crexendo and VALTECH SE
Given the investment horizon of 90 days Crexendo is expected to under-perform the VALTECH SE. In addition to that, Crexendo is 9.71 times more volatile than VALTECH SE. It trades about -0.02 of its total potential returns per unit of risk. VALTECH SE is currently generating about 0.16 per unit of volatility. If you would invest 9,994 in VALTECH SE on September 1, 2024 and sell it today you would earn a total of 126.00 from holding VALTECH SE or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Crexendo vs. VALTECH SE
Performance |
| Timeline |
| Crexendo |
| VALTECH SE |
Crexendo and VALTECH SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crexendo and VALTECH SE
The main advantage of trading using opposite Crexendo and VALTECH SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crexendo position performs unexpectedly, VALTECH 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 VALTECH SE will offset losses from the drop in VALTECH SE's long position.| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
| VALTECH SE vs. NFT Limited | VALTECH SE vs. Enlivex Therapeutics | VALTECH SE vs. Wisekey International Holding | VALTECH SE vs. Sphere 3D Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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