Correlation Between Fenix Outdoor and Profoto Holding
Can any of the company-specific risk be diversified away by investing in both Fenix Outdoor and Profoto Holding 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 Fenix Outdoor and Profoto Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fenix Outdoor International and Profoto Holding AB, you can compare the effects of market volatilities on Fenix Outdoor and Profoto Holding 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 Fenix Outdoor with a short position of Profoto Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenix Outdoor and Profoto Holding.
Diversification Opportunities for Fenix Outdoor and Profoto Holding
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fenix and Profoto is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fenix Outdoor International and Profoto Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profoto Holding AB and Fenix Outdoor 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 Fenix Outdoor International are associated (or correlated) with Profoto Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profoto Holding AB has no effect on the direction of Fenix Outdoor i.e., Fenix Outdoor and Profoto Holding go up and down completely randomly.
Pair Corralation between Fenix Outdoor and Profoto Holding
Assuming the 90 days trading horizon Fenix Outdoor International is expected to generate 0.51 times more return on investment than Profoto Holding. However, Fenix Outdoor International is 1.96 times less risky than Profoto Holding. It trades about -0.07 of its potential returns per unit of risk. Profoto Holding AB is currently generating about -0.12 per unit of risk. If you would invest 63,800 in Fenix Outdoor International on August 28, 2024 and sell it today you would lose (3,800) from holding Fenix Outdoor International or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Fenix Outdoor International vs. Profoto Holding AB
Performance |
| Timeline |
| Fenix Outdoor Intern |
| Profoto Holding AB |
Fenix Outdoor and Profoto Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenix Outdoor and Profoto Holding
The main advantage of trading using opposite Fenix Outdoor and Profoto Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenix Outdoor position performs unexpectedly, Profoto Holding 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 Profoto Holding will offset losses from the drop in Profoto Holding's long position.| Fenix Outdoor vs. Awardit AB | Fenix Outdoor vs. RVRC Holding AB | Fenix Outdoor vs. Smart Eye AB | Fenix Outdoor vs. KABE Group AB |
| Profoto Holding vs. Awardit AB | Profoto Holding vs. RVRC Holding AB | Profoto Holding vs. Smart Eye AB | Profoto Holding vs. KABE Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |