Correlation Between Footway Group and FormPipe Software
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By analyzing existing cross correlation between Footway Group AB and FormPipe Software AB, you can compare the effects of market volatilities on Footway Group and FormPipe Software 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 Footway Group with a short position of FormPipe Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and FormPipe Software.
Diversification Opportunities for Footway Group and FormPipe Software
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Footway and FormPipe is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and FormPipe Software AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormPipe Software and Footway 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 Footway Group AB are associated (or correlated) with FormPipe Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormPipe Software has no effect on the direction of Footway Group i.e., Footway Group and FormPipe Software go up and down completely randomly.
Pair Corralation between Footway Group and FormPipe Software
Assuming the 90 days trading horizon Footway Group AB is expected to under-perform the FormPipe Software. In addition to that, Footway Group is 1.67 times more volatile than FormPipe Software AB. It trades about -0.13 of its total potential returns per unit of risk. FormPipe Software AB is currently generating about -0.1 per unit of volatility. If you would invest 2,520 in FormPipe Software AB on September 13, 2024 and sell it today you would lose (120.00) from holding FormPipe Software AB or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Footway Group AB vs. FormPipe Software AB
Performance |
| Timeline |
| Footway Group AB |
| FormPipe Software |
Footway Group and FormPipe Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and FormPipe Software
The main advantage of trading using opposite Footway Group and FormPipe Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, FormPipe Software 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 FormPipe Software will offset losses from the drop in FormPipe Software's long position.| Footway Group vs. Nitro Games Oyj | Footway Group vs. SaltX Technology Holding | Footway Group vs. Maven Wireless Sweden | Footway Group vs. New Nordic Healthbrands |
| FormPipe Software vs. Enea AB | FormPipe Software vs. Novotek AB | FormPipe Software vs. Addnode Group AB | FormPipe Software vs. Softronic 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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