Correlation Between Organoclick and Saxlund Group
Can any of the company-specific risk be diversified away by investing in both Organoclick 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 Organoclick and Saxlund Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Organoclick AB and Saxlund Group AB, you can compare the effects of market volatilities on Organoclick 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 Organoclick with a short position of Saxlund Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Organoclick and Saxlund Group.
Diversification Opportunities for Organoclick and Saxlund Group
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Organoclick and Saxlund is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Organoclick 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 Organoclick 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 Organoclick 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 Organoclick i.e., Organoclick and Saxlund Group go up and down completely randomly.
Pair Corralation between Organoclick and Saxlund Group
Assuming the 90 days trading horizon Organoclick AB is expected to under-perform the Saxlund Group. But the stock apears to be less risky and, when comparing its historical volatility, Organoclick AB is 3.87 times less risky than Saxlund Group. The stock trades about -0.2 of its potential returns per unit of risk. The Saxlund Group AB is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Saxlund Group AB on September 1, 2024 and sell it today you would earn a total of 159.00 from holding Saxlund Group AB or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Organoclick AB vs. Saxlund Group AB
Performance |
| Timeline |
| Organoclick AB |
| Saxlund Group AB |
Organoclick and Saxlund Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Organoclick and Saxlund Group
The main advantage of trading using opposite Organoclick and Saxlund Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Organoclick 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.| Organoclick vs. Eolus Vind AB | Organoclick vs. Zaptec AS | Organoclick vs. NOTE AB | Organoclick vs. GomSpace Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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