Correlation Between Exsitec Holding and Divio Technologies
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By analyzing existing cross correlation between Exsitec Holding AB and Divio Technologies AB, you can compare the effects of market volatilities on Exsitec Holding and Divio Technologies 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 Exsitec Holding with a short position of Divio Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exsitec Holding and Divio Technologies.
Diversification Opportunities for Exsitec Holding and Divio Technologies
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Exsitec and Divio is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Exsitec Holding AB and Divio Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Divio Technologies and Exsitec Holding 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 Exsitec Holding AB are associated (or correlated) with Divio Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Divio Technologies has no effect on the direction of Exsitec Holding i.e., Exsitec Holding and Divio Technologies go up and down completely randomly.
Pair Corralation between Exsitec Holding and Divio Technologies
Assuming the 90 days trading horizon Exsitec Holding is expected to generate 5.73 times less return on investment than Divio Technologies. But when comparing it to its historical volatility, Exsitec Holding AB is 4.96 times less risky than Divio Technologies. It trades about 0.02 of its potential returns per unit of risk. Divio Technologies AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Divio Technologies AB on September 24, 2024 and sell it today you would lose (6.00) from holding Divio Technologies AB or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exsitec Holding AB vs. Divio Technologies AB
Performance |
| Timeline |
| Exsitec Holding AB |
| Divio Technologies |
Exsitec Holding and Divio Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exsitec Holding and Divio Technologies
The main advantage of trading using opposite Exsitec Holding and Divio Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exsitec Holding position performs unexpectedly, Divio Technologies 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 Divio Technologies will offset losses from the drop in Divio Technologies' long position.| Exsitec Holding vs. CAG Group AB | Exsitec Holding vs. Know IT AB | Exsitec Holding vs. Enea AB | Exsitec Holding vs. NCAB Group |
| Divio Technologies vs. FormPipe Software AB | Divio Technologies vs. MOBA Network publ | Divio Technologies vs. Exsitec Holding AB | Divio Technologies vs. Novotek 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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