Correlation Between Pexip Holding and Elliptic Laboratories
Can any of the company-specific risk be diversified away by investing in both Pexip Holding and Elliptic Laboratories 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 Pexip Holding and Elliptic Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pexip Holding ASA and Elliptic Laboratories AS, you can compare the effects of market volatilities on Pexip Holding and Elliptic Laboratories 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 Pexip Holding with a short position of Elliptic Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pexip Holding and Elliptic Laboratories.
Diversification Opportunities for Pexip Holding and Elliptic Laboratories
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pexip and Elliptic is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pexip Holding ASA and Elliptic Laboratories AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elliptic Laboratories and Pexip Holding 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 Pexip Holding ASA are associated (or correlated) with Elliptic Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elliptic Laboratories has no effect on the direction of Pexip Holding i.e., Pexip Holding and Elliptic Laboratories go up and down completely randomly.
Pair Corralation between Pexip Holding and Elliptic Laboratories
If you would invest 4,240 in Pexip Holding ASA on November 27, 2024 and sell it today you would earn a total of 70.00 from holding Pexip Holding ASA or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pexip Holding ASA vs. Elliptic Laboratories AS
Performance |
| Timeline |
| Pexip Holding ASA |
| Elliptic Laboratories |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Pexip Holding and Elliptic Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pexip Holding and Elliptic Laboratories
The main advantage of trading using opposite Pexip Holding and Elliptic Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pexip Holding position performs unexpectedly, Elliptic Laboratories 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 Elliptic Laboratories will offset losses from the drop in Elliptic Laboratories' long position.| Pexip Holding vs. XXL ASA | Pexip Holding vs. Nordic Semiconductor ASA | Pexip Holding vs. Aker Horizons AS | Pexip Holding vs. Atlantic Sapphire As |
| Elliptic Laboratories vs. Polight ASA | Elliptic Laboratories vs. ExpreS2ion Biotech Holding | Elliptic Laboratories vs. Kongsberg Automotive Holding |
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 CEOs Directory module to screen CEOs from public companies around the world.
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