Correlation Between Promimic and OssDsign
Can any of the company-specific risk be diversified away by investing in both Promimic and OssDsign 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 Promimic and OssDsign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Promimic AB and OssDsign AB, you can compare the effects of market volatilities on Promimic and OssDsign 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 Promimic with a short position of OssDsign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promimic and OssDsign.
Diversification Opportunities for Promimic and OssDsign
Excellent diversification
The 3 months correlation between Promimic and OssDsign is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Promimic AB and OssDsign AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OssDsign AB and Promimic 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 Promimic AB are associated (or correlated) with OssDsign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OssDsign AB has no effect on the direction of Promimic i.e., Promimic and OssDsign go up and down completely randomly.
Pair Corralation between Promimic and OssDsign
Assuming the 90 days trading horizon Promimic AB is expected to generate 1.45 times more return on investment than OssDsign. However, Promimic is 1.45 times more volatile than OssDsign AB. It trades about 0.0 of its potential returns per unit of risk. OssDsign AB is currently generating about -0.01 per unit of risk. If you would invest 3,180 in Promimic AB on September 3, 2024 and sell it today you would lose (280.00) from holding Promimic AB or give up 8.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Promimic AB vs. OssDsign AB
Performance |
| Timeline |
| Promimic AB |
| OssDsign AB |
Promimic and OssDsign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promimic and OssDsign
The main advantage of trading using opposite Promimic and OssDsign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promimic position performs unexpectedly, OssDsign 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 OssDsign will offset losses from the drop in OssDsign's long position.| Promimic vs. OssDsign AB | Promimic vs. ADDvise Group AB | Promimic vs. Paxman AB | Promimic vs. MilDef Group AB |
| OssDsign vs. iZafe Group AB | OssDsign vs. Triboron International AB | OssDsign vs. KABE Group AB | OssDsign vs. IAR Systems Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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