Correlation Between Kancera AB and Saxlund Group
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Saxlund Group 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 Kancera AB and Saxlund Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Saxlund Group AB, you can compare the effects of market volatilities on Kancera AB and Saxlund Group 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 Kancera AB with a short position of Saxlund Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Saxlund Group.
Diversification Opportunities for Kancera AB and Saxlund Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kancera and Saxlund is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Saxlund Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saxlund Group AB and Kancera AB 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 Kancera AB are associated (or correlated) with Saxlund Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saxlund Group AB has no effect on the direction of Kancera AB i.e., Kancera AB and Saxlund Group go up and down completely randomly.
Pair Corralation between Kancera AB and Saxlund Group
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the Saxlund Group. In addition to that, Kancera AB is 1.31 times more volatile than Saxlund Group AB. It trades about -0.12 of its total potential returns per unit of risk. Saxlund Group AB is currently generating about -0.01 per unit of volatility. If you would invest 1,140 in Saxlund Group AB on August 28, 2024 and sell it today you would lose (150.00) from holding Saxlund Group AB or give up 13.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Saxlund Group AB
Performance |
| Timeline |
| Kancera AB |
| Saxlund Group AB |
Kancera AB and Saxlund Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Saxlund Group
The main advantage of trading using opposite Kancera AB and Saxlund Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Saxlund Group 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 Saxlund Group will offset losses from the drop in Saxlund Group's long position.| Kancera AB vs. Bavarian Nordic | Kancera AB vs. BioPorto | Kancera AB vs. Zaptec AS | Kancera AB vs. cBrain AS |
| Saxlund Group vs. Spectrumone publ AB | Saxlund Group vs. Kancera AB | Saxlund Group vs. Cortus Energy AB | Saxlund Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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