Correlation Between FOM Technologies and Konsolidator
Can any of the company-specific risk be diversified away by investing in both FOM Technologies and Konsolidator 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 FOM Technologies and Konsolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOM Technologies AS and Konsolidator AS, you can compare the effects of market volatilities on FOM Technologies and Konsolidator 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 FOM Technologies with a short position of Konsolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOM Technologies and Konsolidator.
Diversification Opportunities for FOM Technologies and Konsolidator
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FOM and Konsolidator is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding FOM Technologies AS and Konsolidator AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konsolidator AS and FOM Technologies 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 FOM Technologies AS are associated (or correlated) with Konsolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konsolidator AS has no effect on the direction of FOM Technologies i.e., FOM Technologies and Konsolidator go up and down completely randomly.
Pair Corralation between FOM Technologies and Konsolidator
Assuming the 90 days trading horizon FOM Technologies AS is expected to under-perform the Konsolidator. In addition to that, FOM Technologies is 1.24 times more volatile than Konsolidator AS. It trades about -0.1 of its total potential returns per unit of risk. Konsolidator AS is currently generating about 0.03 per unit of volatility. If you would invest 370.00 in Konsolidator AS on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Konsolidator AS or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOM Technologies AS vs. Konsolidator AS
Performance |
| Timeline |
| FOM Technologies |
| Konsolidator AS |
FOM Technologies and Konsolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOM Technologies and Konsolidator
The main advantage of trading using opposite FOM Technologies and Konsolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOM Technologies position performs unexpectedly, Konsolidator 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 Konsolidator will offset losses from the drop in Konsolidator's long position.| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell AS |
| Konsolidator vs. MapsPeople AS | Konsolidator vs. Bavarian Nordic | Konsolidator vs. Investeringsselskabet Luxor AS | Konsolidator vs. cBrain 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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