Correlation Between Havsfrun Investment and FlexQube
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and FlexQube 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 Havsfrun Investment and FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and FlexQube AB, you can compare the effects of market volatilities on Havsfrun Investment and FlexQube 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 Havsfrun Investment with a short position of FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and FlexQube.
Diversification Opportunities for Havsfrun Investment and FlexQube
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Havsfrun and FlexQube is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube AB and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and FlexQube go up and down completely randomly.
Pair Corralation between Havsfrun Investment and FlexQube
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 0.79 times more return on investment than FlexQube. However, Havsfrun Investment AB is 1.26 times less risky than FlexQube. It trades about 0.02 of its potential returns per unit of risk. FlexQube AB is currently generating about -0.08 per unit of risk. If you would invest 1,182 in Havsfrun Investment AB on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Havsfrun Investment AB or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. FlexQube AB
Performance |
| Timeline |
| Havsfrun Investment |
| FlexQube AB |
Havsfrun Investment and FlexQube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and FlexQube
The main advantage of trading using opposite Havsfrun Investment and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, FlexQube 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 FlexQube will offset losses from the drop in FlexQube's long position.| Havsfrun Investment vs. Media and Games | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group | Havsfrun Investment vs. Norva24 Group AB |
| FlexQube vs. Addtech AB | FlexQube vs. Indutrade AB | FlexQube vs. Lifco AB | FlexQube vs. NIBE Industrier 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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