Correlation Between Doxa AB and Synsam AB
Can any of the company-specific risk be diversified away by investing in both Doxa AB and Synsam 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 Doxa AB and Synsam AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doxa AB and Synsam AB, you can compare the effects of market volatilities on Doxa AB and Synsam 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 Doxa AB with a short position of Synsam AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doxa AB and Synsam AB.
Diversification Opportunities for Doxa AB and Synsam AB
Poor diversification
The 3 months correlation between Doxa and Synsam is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Doxa AB and Synsam AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synsam AB and Doxa 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 Doxa AB are associated (or correlated) with Synsam AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synsam AB has no effect on the direction of Doxa AB i.e., Doxa AB and Synsam AB go up and down completely randomly.
Pair Corralation between Doxa AB and Synsam AB
Assuming the 90 days trading horizon Doxa AB is expected to generate 0.55 times more return on investment than Synsam AB. However, Doxa AB is 1.83 times less risky than Synsam AB. It trades about -0.06 of its potential returns per unit of risk. Synsam AB is currently generating about -0.22 per unit of risk. If you would invest 107.00 in Doxa AB on August 30, 2024 and sell it today you would lose (2.00) from holding Doxa AB or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doxa AB vs. Synsam AB
Performance |
| Timeline |
| Doxa AB |
| Synsam AB |
Doxa AB and Synsam AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doxa AB and Synsam AB
The main advantage of trading using opposite Doxa AB and Synsam AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doxa AB position performs unexpectedly, Synsam 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 Synsam AB will offset losses from the drop in Synsam AB's long position.| Doxa AB vs. Mantex AB | Doxa AB vs. Genovis AB | Doxa AB vs. Vestum AB | Doxa AB vs. Karolinska Development AB |
| Synsam AB vs. Mantex AB | Synsam AB vs. Genovis AB | Synsam AB vs. Vestum AB | Synsam AB vs. Karolinska Development 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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