Correlation Between FlexQube and GomSpace Group
Can any of the company-specific risk be diversified away by investing in both FlexQube and GomSpace Group 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 FlexQube and GomSpace Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexQube AB and GomSpace Group AB, you can compare the effects of market volatilities on FlexQube and GomSpace Group 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 FlexQube with a short position of GomSpace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexQube and GomSpace Group.
Diversification Opportunities for FlexQube and GomSpace Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FlexQube and GomSpace is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding FlexQube AB and GomSpace Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GomSpace Group AB and FlexQube 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 FlexQube AB are associated (or correlated) with GomSpace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GomSpace Group AB has no effect on the direction of FlexQube i.e., FlexQube and GomSpace Group go up and down completely randomly.
Pair Corralation between FlexQube and GomSpace Group
Assuming the 90 days trading horizon FlexQube is expected to generate 3.19 times less return on investment than GomSpace Group. But when comparing it to its historical volatility, FlexQube AB is 1.1 times less risky than GomSpace Group. It trades about 0.1 of its potential returns per unit of risk. GomSpace Group AB is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 419.00 in GomSpace Group AB on September 13, 2024 and sell it today you would earn a total of 84.00 from holding GomSpace Group AB or generate 20.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FlexQube AB vs. GomSpace Group AB
Performance |
| Timeline |
| FlexQube AB |
| GomSpace Group AB |
FlexQube and GomSpace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexQube and GomSpace Group
The main advantage of trading using opposite FlexQube and GomSpace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexQube position performs unexpectedly, GomSpace Group 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 GomSpace Group will offset losses from the drop in GomSpace Group's long position.| FlexQube vs. GomSpace Group AB | FlexQube vs. Fingerprint Cards AB | FlexQube vs. Maha Energy AB | FlexQube vs. SolTech Energy Sweden |
| GomSpace Group vs. Skandinaviska Enskilda Banken | GomSpace Group vs. Skandinaviska Enskilda Banken | GomSpace Group vs. Swedbank AB | GomSpace Group vs. Svenska Handelsbanken 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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