Correlation Between Maha Energy and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both Maha Energy and SaltX 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 Maha Energy and SaltX Technology 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 SaltX Technology Holding, you can compare the effects of market volatilities on Maha Energy and SaltX 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 Maha Energy with a short position of SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maha Energy and SaltX Technology.
Diversification Opportunities for Maha Energy and SaltX Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maha and SaltX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maha Energy AB and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology Holding 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 SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of Maha Energy i.e., Maha Energy and SaltX Technology go up and down completely randomly.
Pair Corralation between Maha Energy and SaltX Technology
Assuming the 90 days trading horizon Maha Energy is expected to generate 2.14 times less return on investment than SaltX Technology. But when comparing it to its historical volatility, Maha Energy AB is 1.78 times less risky than SaltX Technology. It trades about 0.01 of its potential returns per unit of risk. SaltX Technology Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 353.00 in SaltX Technology Holding on October 26, 2024 and sell it today you would lose (3.00) from holding SaltX Technology Holding or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Maha Energy AB vs. SaltX Technology Holding
Performance |
| Timeline |
| Maha Energy AB |
| SaltX Technology Holding |
Maha Energy and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maha Energy and SaltX Technology
The main advantage of trading using opposite Maha Energy and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maha Energy position performs unexpectedly, SaltX 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 SaltX Technology will offset losses from the drop in SaltX Technology'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 |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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