Correlation Between Exsitec Holding and Greater Than
Can any of the company-specific risk be diversified away by investing in both Exsitec Holding and Greater Than 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 Exsitec Holding and Greater Than into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exsitec Holding AB and Greater Than AB, you can compare the effects of market volatilities on Exsitec Holding and Greater Than 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 Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exsitec Holding and Greater Than.
Diversification Opportunities for Exsitec Holding and Greater Than
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exsitec and Greater is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Exsitec Holding AB and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than AB 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 Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of Exsitec Holding i.e., Exsitec Holding and Greater Than go up and down completely randomly.
Pair Corralation between Exsitec Holding and Greater Than
Assuming the 90 days trading horizon Exsitec Holding AB is expected to generate 0.47 times more return on investment than Greater Than. However, Exsitec Holding AB is 2.11 times less risky than Greater Than. It trades about 0.0 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.07 per unit of risk. If you would invest 14,850 in Exsitec Holding AB on August 25, 2024 and sell it today you would lose (700.00) from holding Exsitec Holding AB or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exsitec Holding AB vs. Greater Than AB
Performance |
| Timeline |
| Exsitec Holding AB |
| Greater Than AB |
Exsitec Holding and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exsitec Holding and Greater Than
The main advantage of trading using opposite Exsitec Holding and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exsitec Holding position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.| Exsitec Holding vs. Svedbergs i Dalstorp | Exsitec Holding vs. Know IT AB | Exsitec Holding vs. FormPipe Software AB |
| Greater Than vs. BIMobject AB | Greater Than vs. IAR Systems Group | Greater Than vs. FormPipe Software AB | Greater Than vs. Generic Sweden publ |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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