Correlation Between FormPipe Software and Modelon AB
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By analyzing existing cross correlation between FormPipe Software AB and Modelon AB Cl, you can compare the effects of market volatilities on FormPipe Software and Modelon AB 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 Modelon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormPipe Software and Modelon AB.
Diversification Opportunities for FormPipe Software and Modelon AB
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between FormPipe and Modelon is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding FormPipe Software AB and Modelon AB Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modelon AB Cl 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 Modelon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modelon AB Cl has no effect on the direction of FormPipe Software i.e., FormPipe Software and Modelon AB go up and down completely randomly.
Pair Corralation between FormPipe Software and Modelon AB
Assuming the 90 days trading horizon FormPipe Software AB is expected to generate 0.67 times more return on investment than Modelon AB. However, FormPipe Software AB is 1.5 times less risky than Modelon AB. It trades about 0.07 of its potential returns per unit of risk. Modelon AB Cl is currently generating about 0.03 per unit of risk. If you would invest 2,525 in FormPipe Software AB on September 1, 2024 and sell it today you would earn a total of 65.00 from holding FormPipe Software AB or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FormPipe Software AB vs. Modelon AB Cl
Performance |
| Timeline |
| FormPipe Software |
| Modelon AB Cl |
FormPipe Software and Modelon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormPipe Software and Modelon AB
The main advantage of trading using opposite FormPipe Software and Modelon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormPipe Software position performs unexpectedly, Modelon AB 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 Modelon AB will offset losses from the drop in Modelon AB's long position.| FormPipe Software vs. Enea AB | FormPipe Software vs. Novotek AB | FormPipe Software vs. Addnode Group AB | FormPipe Software vs. Softronic AB |
| Modelon AB vs. Greater Than AB | Modelon AB vs. FormPipe Software AB | Modelon AB vs. MOBA Network publ | Modelon AB vs. Exsitec Holding 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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