Correlation Between Kjell Group and Upsales Technology
Can any of the company-specific risk be diversified away by investing in both Kjell Group and Upsales 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 Kjell Group and Upsales Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kjell Group AB and Upsales Technology AB, you can compare the effects of market volatilities on Kjell Group and Upsales 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 Kjell Group with a short position of Upsales Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kjell Group and Upsales Technology.
Diversification Opportunities for Kjell Group and Upsales Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kjell and Upsales is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kjell Group AB and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology and Kjell Group 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 Kjell Group AB are associated (or correlated) with Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of Kjell Group i.e., Kjell Group and Upsales Technology go up and down completely randomly.
Pair Corralation between Kjell Group and Upsales Technology
Assuming the 90 days trading horizon Kjell Group AB is expected to under-perform the Upsales Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kjell Group AB is 1.09 times less risky than Upsales Technology. The stock trades about -0.16 of its potential returns per unit of risk. The Upsales Technology AB is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,910 in Upsales Technology AB on August 28, 2024 and sell it today you would lose (870.00) from holding Upsales Technology AB or give up 22.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kjell Group AB vs. Upsales Technology AB
Performance |
| Timeline |
| Kjell Group AB |
| Upsales Technology |
Kjell Group and Upsales Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kjell Group and Upsales Technology
The main advantage of trading using opposite Kjell Group and Upsales Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kjell Group position performs unexpectedly, Upsales 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 Upsales Technology will offset losses from the drop in Upsales Technology's long position.| Kjell Group vs. Precise Biometrics AB | Kjell Group vs. Anoto Group AB | Kjell Group vs. Bong AB | Kjell Group vs. Episurf Medical AB |
| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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