Correlation Between Maha Energy and FlexQube
Can any of the company-specific risk be diversified away by investing in both Maha Energy and FlexQube 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 Maha Energy and FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maha Energy AB and FlexQube AB, you can compare the effects of market volatilities on Maha Energy and FlexQube 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 Maha Energy with a short position of FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maha Energy and FlexQube.
Diversification Opportunities for Maha Energy and FlexQube
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maha and FlexQube is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Maha Energy AB and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube AB and Maha Energy 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 Maha Energy AB are associated (or correlated) with FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of Maha Energy i.e., Maha Energy and FlexQube go up and down completely randomly.
Pair Corralation between Maha Energy and FlexQube
Assuming the 90 days trading horizon Maha Energy AB is expected to generate 0.65 times more return on investment than FlexQube. However, Maha Energy AB is 1.54 times less risky than FlexQube. It trades about -0.05 of its potential returns per unit of risk. FlexQube AB is currently generating about -0.04 per unit of risk. If you would invest 986.00 in Maha Energy AB on September 14, 2024 and sell it today you would lose (335.00) from holding Maha Energy AB or give up 33.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Maha Energy AB vs. FlexQube AB
Performance |
| Timeline |
| Maha Energy AB |
| FlexQube AB |
Maha Energy and FlexQube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maha Energy and FlexQube
The main advantage of trading using opposite Maha Energy and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maha Energy position performs unexpectedly, FlexQube 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 FlexQube will offset losses from the drop in FlexQube's long position.| Maha Energy vs. GomSpace Group AB | Maha Energy vs. SaltX Technology Holding | Maha Energy vs. Ambu AS | Maha Energy vs. Fingerprint Cards AB |
| FlexQube vs. GomSpace Group AB | FlexQube vs. Fingerprint Cards AB | FlexQube vs. Maha Energy AB | FlexQube 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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