Correlation Between Kancera AB and Smart Eye
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Smart Eye 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 Smart Eye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Smart Eye AB, you can compare the effects of market volatilities on Kancera AB and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Smart Eye.
Diversification Opportunities for Kancera AB and Smart Eye
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kancera and Smart is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Kancera AB i.e., Kancera AB and Smart Eye go up and down completely randomly.
Pair Corralation between Kancera AB and Smart Eye
Assuming the 90 days trading horizon Kancera AB is expected to generate 2.23 times more return on investment than Smart Eye. However, Kancera AB is 2.23 times more volatile than Smart Eye AB. It trades about 0.0 of its potential returns per unit of risk. Smart Eye AB is currently generating about -0.04 per unit of risk. If you would invest 145.00 in Kancera AB on September 3, 2024 and sell it today you would lose (48.00) from holding Kancera AB or give up 33.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Smart Eye AB
Performance |
| Timeline |
| Kancera AB |
| Smart Eye AB |
Kancera AB and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Smart Eye
The main advantage of trading using opposite Kancera AB and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye's long position.| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ AB |
| Smart Eye vs. Svenska Handelsbanken AB | Smart Eye vs. Bio Works Technologies AB | Smart Eye vs. Upsales Technology AB | Smart Eye vs. FormPipe Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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