Correlation Between Desenio Group and Dedicare
Can any of the company-specific risk be diversified away by investing in both Desenio Group and Dedicare 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 Desenio Group and Dedicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desenio Group AB and Dedicare AB, you can compare the effects of market volatilities on Desenio Group and Dedicare 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 Desenio Group with a short position of Dedicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desenio Group and Dedicare.
Diversification Opportunities for Desenio Group and Dedicare
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Desenio and Dedicare is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Desenio Group AB and Dedicare AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dedicare AB and Desenio 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 Desenio Group AB are associated (or correlated) with Dedicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dedicare AB has no effect on the direction of Desenio Group i.e., Desenio Group and Dedicare go up and down completely randomly.
Pair Corralation between Desenio Group and Dedicare
Assuming the 90 days trading horizon Desenio Group AB is expected to generate 3.13 times more return on investment than Dedicare. However, Desenio Group is 3.13 times more volatile than Dedicare AB. It trades about -0.01 of its potential returns per unit of risk. Dedicare AB is currently generating about -0.05 per unit of risk. If you would invest 30.00 in Desenio Group AB on September 12, 2024 and sell it today you would lose (2.00) from holding Desenio Group AB or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desenio Group AB vs. Dedicare AB
Performance |
| Timeline |
| Desenio Group AB |
| Dedicare AB |
Desenio Group and Dedicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desenio Group and Dedicare
The main advantage of trading using opposite Desenio Group and Dedicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desenio Group position performs unexpectedly, Dedicare 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 Dedicare will offset losses from the drop in Dedicare's long position.| Desenio Group vs. Rugvista Group AB | Desenio Group vs. Cint Group AB | Desenio Group vs. BHG Group AB | Desenio Group vs. Lyko Group A |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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