Correlation Between Elekta AB and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Elekta AB and Fluoguide 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 Elekta AB and Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elekta AB and Fluoguide AS, you can compare the effects of market volatilities on Elekta AB and Fluoguide 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 Elekta AB with a short position of Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elekta AB and Fluoguide.
Diversification Opportunities for Elekta AB and Fluoguide
Poor diversification
The 3 months correlation between Elekta and Fluoguide is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Elekta AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS and Elekta 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 Elekta AB are associated (or correlated) with Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Elekta AB i.e., Elekta AB and Fluoguide go up and down completely randomly.
Pair Corralation between Elekta AB and Fluoguide
Assuming the 90 days trading horizon Elekta AB is expected to under-perform the Fluoguide. But the stock apears to be less risky and, when comparing its historical volatility, Elekta AB is 1.89 times less risky than Fluoguide. The stock trades about -0.07 of its potential returns per unit of risk. The Fluoguide AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Fluoguide AS on August 30, 2024 and sell it today you would lose (10.00) from holding Fluoguide AS or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elekta AB vs. Fluoguide AS
Performance |
| Timeline |
| Elekta AB |
| Fluoguide AS |
Elekta AB and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elekta AB and Fluoguide
The main advantage of trading using opposite Elekta AB and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elekta AB position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Elekta AB vs. Mantex AB | Elekta AB vs. Genovis AB | Elekta AB vs. Vestum AB | Elekta AB vs. Karolinska Development AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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