Correlation Between Greater Than and Exsitec Holding
Can any of the company-specific risk be diversified away by investing in both Greater Than and Exsitec Holding 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 Greater Than and Exsitec Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Than AB and Exsitec Holding AB, you can compare the effects of market volatilities on Greater Than and Exsitec Holding 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 Greater Than with a short position of Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Than and Exsitec Holding.
Diversification Opportunities for Greater Than and Exsitec Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greater and Exsitec is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Greater Than AB and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding AB and Greater Than 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 Greater Than AB are associated (or correlated) with Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of Greater Than i.e., Greater Than and Exsitec Holding go up and down completely randomly.
Pair Corralation between Greater Than and Exsitec Holding
Assuming the 90 days trading horizon Greater Than AB is expected to under-perform the Exsitec Holding. In addition to that, Greater Than is 2.38 times more volatile than Exsitec Holding AB. It trades about -0.27 of its total potential returns per unit of risk. Exsitec Holding AB is currently generating about 0.09 per unit of volatility. If you would invest 14,000 in Exsitec Holding AB on August 29, 2024 and sell it today you would earn a total of 500.00 from holding Exsitec Holding AB or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Than AB vs. Exsitec Holding AB
Performance |
| Timeline |
| Greater Than AB |
| Exsitec Holding AB |
Greater Than and Exsitec Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Than and Exsitec Holding
The main advantage of trading using opposite Greater Than and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Than position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding's long position.| Greater Than vs. Spectrumone publ AB | Greater Than vs. Media and Games | Greater Than vs. Enersize Oy | Greater Than vs. Cantargia AB |
| Exsitec Holding vs. Softronic AB | Exsitec Holding vs. Prevas AB | Exsitec Holding vs. FormPipe Software AB | Exsitec Holding vs. Dedicare 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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