Correlation Between GomSpace Group and Acconeer
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Acconeer 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 GomSpace Group and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GomSpace Group AB and Acconeer AB, you can compare the effects of market volatilities on GomSpace Group and Acconeer 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 GomSpace Group with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Acconeer.
Diversification Opportunities for GomSpace Group and Acconeer
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GomSpace and Acconeer is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and GomSpace 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 GomSpace Group AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of GomSpace Group i.e., GomSpace Group and Acconeer go up and down completely randomly.
Pair Corralation between GomSpace Group and Acconeer
Assuming the 90 days trading horizon GomSpace Group AB is expected to under-perform the Acconeer. But the stock apears to be less risky and, when comparing its historical volatility, GomSpace Group AB is 1.23 times less risky than Acconeer. The stock trades about -0.26 of its potential returns per unit of risk. The Acconeer AB is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Acconeer AB on November 4, 2024 and sell it today you would lose (49.00) from holding Acconeer AB or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GomSpace Group AB vs. Acconeer AB
Performance |
| Timeline |
| GomSpace Group AB |
| Acconeer AB |
GomSpace Group and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Acconeer
The main advantage of trading using opposite GomSpace Group and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma AS |
| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
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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