Correlation Between FormPipe Software and Footway Group
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By analyzing existing cross correlation between FormPipe Software AB and Footway Group AB, you can compare the effects of market volatilities on FormPipe Software and Footway 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 FormPipe Software with a short position of Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormPipe Software and Footway Group.
Diversification Opportunities for FormPipe Software and Footway Group
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FormPipe and Footway is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding FormPipe Software AB and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB and FormPipe Software 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 FormPipe Software AB are associated (or correlated) with Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of FormPipe Software i.e., FormPipe Software and Footway Group go up and down completely randomly.
Pair Corralation between FormPipe Software and Footway Group
Assuming the 90 days trading horizon FormPipe Software AB is expected to generate 0.55 times more return on investment than Footway Group. However, FormPipe Software AB is 1.83 times less risky than Footway Group. It trades about -0.06 of its potential returns per unit of risk. Footway Group AB is currently generating about -0.16 per unit of risk. If you would invest 2,584 in FormPipe Software AB on August 29, 2024 and sell it today you would lose (74.00) from holding FormPipe Software AB or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FormPipe Software AB vs. Footway Group AB
Performance |
| Timeline |
| FormPipe Software |
| Footway Group AB |
FormPipe Software and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormPipe Software and Footway Group
The main advantage of trading using opposite FormPipe Software and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormPipe Software position performs unexpectedly, Footway 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 Footway Group will offset losses from the drop in Footway Group's long position.| FormPipe Software vs. Enea AB | FormPipe Software vs. Novotek AB | FormPipe Software vs. Addnode Group AB | FormPipe Software vs. Softronic AB |
| Footway Group vs. SolTech Energy Sweden | Footway Group vs. Lohilo Foods AB | Footway Group vs. Sdiptech AB | Footway Group vs. Upsales Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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