Correlation Between Divio Technologies and Mekonomen
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By analyzing existing cross correlation between Divio Technologies AB and Mekonomen AB, you can compare the effects of market volatilities on Divio Technologies and Mekonomen 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 Divio Technologies with a short position of Mekonomen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Divio Technologies and Mekonomen.
Diversification Opportunities for Divio Technologies and Mekonomen
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Divio and Mekonomen is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Divio Technologies AB and Mekonomen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekonomen AB and Divio Technologies 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 Divio Technologies AB are associated (or correlated) with Mekonomen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekonomen AB has no effect on the direction of Divio Technologies i.e., Divio Technologies and Mekonomen go up and down completely randomly.
Pair Corralation between Divio Technologies and Mekonomen
Assuming the 90 days trading horizon Divio Technologies AB is expected to under-perform the Mekonomen. In addition to that, Divio Technologies is 2.61 times more volatile than Mekonomen AB. It trades about -0.22 of its total potential returns per unit of risk. Mekonomen AB is currently generating about -0.01 per unit of volatility. If you would invest 13,200 in Mekonomen AB on September 24, 2024 and sell it today you would lose (60.00) from holding Mekonomen AB or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Divio Technologies AB vs. Mekonomen AB
Performance |
| Timeline |
| Divio Technologies |
| Mekonomen AB |
Divio Technologies and Mekonomen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Divio Technologies and Mekonomen
The main advantage of trading using opposite Divio Technologies and Mekonomen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Divio Technologies position performs unexpectedly, Mekonomen 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 Mekonomen will offset losses from the drop in Mekonomen's long position.| Divio Technologies vs. FormPipe Software AB | Divio Technologies vs. MOBA Network publ | Divio Technologies vs. Exsitec Holding AB | Divio Technologies vs. Novotek 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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