Correlation Between Essity AB and Elekta AB
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By analyzing existing cross correlation between Essity AB and Elekta AB, you can compare the effects of market volatilities on Essity AB and Elekta 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 Essity AB with a short position of Elekta AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Elekta AB.
Diversification Opportunities for Essity AB and Elekta AB
Very weak diversification
The 3 months correlation between Essity and Elekta is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Essity AB and Elekta AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elekta AB and Essity 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 Essity AB are associated (or correlated) with Elekta AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elekta AB has no effect on the direction of Essity AB i.e., Essity AB and Elekta AB go up and down completely randomly.
Pair Corralation between Essity AB and Elekta AB
Assuming the 90 days trading horizon Essity AB is expected to generate 0.58 times more return on investment than Elekta AB. However, Essity AB is 1.74 times less risky than Elekta AB. It trades about 0.04 of its potential returns per unit of risk. Elekta AB is currently generating about 0.02 per unit of risk. If you would invest 25,264 in Essity AB on August 30, 2024 and sell it today you would earn a total of 5,296 from holding Essity AB or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Essity AB vs. Elekta AB
Performance |
| Timeline |
| Essity AB |
| Elekta AB |
Essity AB and Elekta AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essity AB and Elekta AB
The main advantage of trading using opposite Essity AB and Elekta AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity AB position performs unexpectedly, Elekta 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 Elekta AB will offset losses from the drop in Elekta AB's long position.| Essity AB vs. Mendus AB | Essity AB vs. JonDeTech Sensors | Essity AB vs. Nexam Chemical Holding | Essity AB vs. Lohilo Foods AB |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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