Correlation Between Elekta AB and Getinge AB
Can any of the company-specific risk be diversified away by investing in both Elekta AB and Getinge 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 Elekta AB and Getinge AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elekta AB and Getinge AB ser, you can compare the effects of market volatilities on Elekta AB and Getinge 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 Elekta AB with a short position of Getinge AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elekta AB and Getinge AB.
Diversification Opportunities for Elekta AB and Getinge AB
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elekta and Getinge is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Elekta AB and Getinge AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getinge AB ser 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 Getinge AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getinge AB ser has no effect on the direction of Elekta AB i.e., Elekta AB and Getinge AB go up and down completely randomly.
Pair Corralation between Elekta AB and Getinge AB
Assuming the 90 days trading horizon Elekta AB is expected to under-perform the Getinge AB. But the stock apears to be less risky and, when comparing its historical volatility, Elekta AB is 1.02 times less risky than Getinge AB. The stock trades about -0.01 of its potential returns per unit of risk. The Getinge AB ser is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 19,218 in Getinge AB ser on November 3, 2024 and sell it today you would earn a total of 2,592 from holding Getinge AB ser or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elekta AB vs. Getinge AB ser
Performance |
| Timeline |
| Elekta AB |
| Getinge AB ser |
Elekta AB and Getinge AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elekta AB and Getinge AB
The main advantage of trading using opposite Elekta AB and Getinge AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elekta AB position performs unexpectedly, Getinge 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 Getinge AB will offset losses from the drop in Getinge AB's long position.| Elekta AB vs. Getinge AB ser | Elekta AB vs. AB SKF | Elekta AB vs. ASSA ABLOY AB | Elekta AB vs. Husqvarna 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |