Correlation Between PolyPlank Publ and Saxlund Group
Can any of the company-specific risk be diversified away by investing in both PolyPlank Publ 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 PolyPlank Publ and Saxlund Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PolyPlank publ AB and Saxlund Group AB, you can compare the effects of market volatilities on PolyPlank Publ 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 PolyPlank Publ with a short position of Saxlund Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPlank Publ and Saxlund Group.
Diversification Opportunities for PolyPlank Publ and Saxlund Group
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PolyPlank and Saxlund is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PolyPlank publ 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 PolyPlank Publ 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 PolyPlank publ 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 PolyPlank Publ i.e., PolyPlank Publ and Saxlund Group go up and down completely randomly.
Pair Corralation between PolyPlank Publ and Saxlund Group
Assuming the 90 days trading horizon PolyPlank publ AB is expected to under-perform the Saxlund Group. In addition to that, PolyPlank Publ is 1.88 times more volatile than Saxlund Group AB. It trades about -0.03 of its total potential returns per unit of risk. Saxlund Group AB is currently generating about 0.13 per unit of volatility. If you would invest 870.00 in Saxlund Group AB on November 28, 2024 and sell it today you would earn a total of 80.00 from holding Saxlund Group AB or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PolyPlank publ AB vs. Saxlund Group AB
Performance |
| Timeline |
| PolyPlank publ AB |
| Saxlund Group AB |
PolyPlank Publ and Saxlund Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPlank Publ and Saxlund Group
The main advantage of trading using opposite PolyPlank Publ and Saxlund Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPlank Publ 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.| PolyPlank Publ vs. Saxlund Group AB | PolyPlank Publ vs. Online Brands Nordic | PolyPlank Publ vs. Organoclick AB | PolyPlank Publ vs. Minesto 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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