Correlation Between IAR Systems and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both IAR Systems and SaltX Technology 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 IAR Systems and SaltX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAR Systems Group and SaltX Technology Holding, you can compare the effects of market volatilities on IAR Systems and SaltX Technology 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 IAR Systems with a short position of SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAR Systems and SaltX Technology.
Diversification Opportunities for IAR Systems and SaltX Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IAR and SaltX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IAR Systems Group and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology Holding and IAR Systems 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 IAR Systems Group are associated (or correlated) with SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of IAR Systems i.e., IAR Systems and SaltX Technology go up and down completely randomly.
Pair Corralation between IAR Systems and SaltX Technology
Assuming the 90 days trading horizon IAR Systems Group is expected to generate 0.44 times more return on investment than SaltX Technology. However, IAR Systems Group is 2.25 times less risky than SaltX Technology. It trades about 0.17 of its potential returns per unit of risk. SaltX Technology Holding is currently generating about 0.06 per unit of risk. If you would invest 12,500 in IAR Systems Group on August 31, 2024 and sell it today you would earn a total of 950.00 from holding IAR Systems Group or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IAR Systems Group vs. SaltX Technology Holding
Performance |
| Timeline |
| IAR Systems Group |
| SaltX Technology Holding |
IAR Systems and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAR Systems and SaltX Technology
The main advantage of trading using opposite IAR Systems and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAR Systems position performs unexpectedly, SaltX Technology 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 SaltX Technology will offset losses from the drop in SaltX Technology's long position.| IAR Systems vs. CellaVision AB | IAR Systems vs. HMS Networks AB | IAR Systems vs. Enea AB | IAR Systems vs. Know IT AB |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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