Correlation Between Flgger Group and SKAKO AS
Can any of the company-specific risk be diversified away by investing in both Flgger Group and SKAKO AS 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 Flgger Group and SKAKO AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flgger group AS and SKAKO AS, you can compare the effects of market volatilities on Flgger Group and SKAKO AS 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 Flgger Group with a short position of SKAKO AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flgger Group and SKAKO AS.
Diversification Opportunities for Flgger Group and SKAKO AS
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flgger and SKAKO is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Flgger group AS and SKAKO AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKAKO AS and Flgger Group 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 Flgger group AS are associated (or correlated) with SKAKO AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKAKO AS has no effect on the direction of Flgger Group i.e., Flgger Group and SKAKO AS go up and down completely randomly.
Pair Corralation between Flgger Group and SKAKO AS
Assuming the 90 days trading horizon Flgger group AS is expected to generate 0.38 times more return on investment than SKAKO AS. However, Flgger group AS is 2.65 times less risky than SKAKO AS. It trades about 0.09 of its potential returns per unit of risk. SKAKO AS is currently generating about 0.0 per unit of risk. If you would invest 32,600 in Flgger group AS on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Flgger group AS or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Flgger group AS vs. SKAKO AS
Performance |
| Timeline |
| Flgger group AS |
| SKAKO AS |
Flgger Group and SKAKO AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flgger Group and SKAKO AS
The main advantage of trading using opposite Flgger Group and SKAKO AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flgger Group position performs unexpectedly, SKAKO AS 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 SKAKO AS will offset losses from the drop in SKAKO AS's long position.| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas AS |
| SKAKO AS vs. North Media AS | SKAKO AS vs. HH International AS | SKAKO AS vs. Per Aarsleff Holding | SKAKO AS vs. First Farms AS |
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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