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
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kancera and Saxlund is -0.24. 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 generate 1.2 times more return on investment than Saxlund Group. However, Kancera AB is 1.2 times more volatile than Saxlund Group AB. It trades about 0.0 of its potential returns per unit of risk. Saxlund Group AB is currently generating about -0.07 per unit of risk. If you would invest 337.00 in Kancera AB on November 5, 2024 and sell it today you would lose (231.00) from holding Kancera AB or give up 68.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ AB | Kancera AB vs. BioInvent International AB |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |