Correlation Between Dala Energi and Catella AB
Can any of the company-specific risk be diversified away by investing in both Dala Energi and Catella AB 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 Dala Energi and Catella AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dala Energi AB and Catella AB A, you can compare the effects of market volatilities on Dala Energi and Catella AB 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 Dala Energi with a short position of Catella AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dala Energi and Catella AB.
Diversification Opportunities for Dala Energi and Catella AB
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dala and Catella is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dala Energi AB and Catella AB A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catella AB A and Dala Energi 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 Dala Energi AB are associated (or correlated) with Catella AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catella AB A has no effect on the direction of Dala Energi i.e., Dala Energi and Catella AB go up and down completely randomly.
Pair Corralation between Dala Energi and Catella AB
Assuming the 90 days horizon Dala Energi AB is expected to generate 0.12 times more return on investment than Catella AB. However, Dala Energi AB is 8.36 times less risky than Catella AB. It trades about 0.23 of its potential returns per unit of risk. Catella AB A is currently generating about -0.09 per unit of risk. If you would invest 10,150 in Dala Energi AB on November 2, 2024 and sell it today you would earn a total of 250.00 from holding Dala Energi AB or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dala Energi AB vs. Catella AB A
Performance |
| Timeline |
| Dala Energi AB |
| Catella AB A |
Dala Energi and Catella AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dala Energi and Catella AB
The main advantage of trading using opposite Dala Energi and Catella AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dala Energi position performs unexpectedly, Catella AB 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 Catella AB will offset losses from the drop in Catella AB's long position.| Dala Energi vs. FM Mattsson Mora | Dala Energi vs. NCAB Group | Dala Energi vs. Nordic Waterproofing Holding | Dala Energi vs. MilDef Group AB |
| Catella AB vs. Catella AB | Catella AB vs. Svolder AB | Catella AB vs. Beijer Alma AB | Catella AB vs. BTS Group AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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