Correlation Between Physitrack PLC and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Physitrack PLC and Awardit AB 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 Physitrack PLC and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Physitrack PLC and Awardit AB, you can compare the effects of market volatilities on Physitrack PLC and Awardit AB 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 Physitrack PLC with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Physitrack PLC and Awardit AB.
Diversification Opportunities for Physitrack PLC and Awardit AB
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Physitrack and Awardit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Physitrack PLC and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and Physitrack PLC 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 Physitrack PLC are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Physitrack PLC i.e., Physitrack PLC and Awardit AB go up and down completely randomly.
Pair Corralation between Physitrack PLC and Awardit AB
Assuming the 90 days trading horizon Physitrack PLC is expected to under-perform the Awardit AB. In addition to that, Physitrack PLC is 2.82 times more volatile than Awardit AB. It trades about -0.11 of its total potential returns per unit of risk. Awardit AB is currently generating about 0.0 per unit of volatility. If you would invest 13,050 in Awardit AB on September 1, 2024 and sell it today you would lose (100.00) from holding Awardit AB or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.8% |
| Values | Daily Returns |
Physitrack PLC vs. Awardit AB
Performance |
| Timeline |
| Physitrack PLC |
| Awardit AB |
Physitrack PLC and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Physitrack PLC and Awardit AB
The main advantage of trading using opposite Physitrack PLC and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Physitrack PLC position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB's long position.| Physitrack PLC vs. AVTECH Sweden AB | Physitrack PLC vs. K2A Knaust Andersson | Physitrack PLC vs. eEducation Albert AB | Physitrack PLC vs. Footway Group AB |
| Awardit AB vs. Upsales Technology AB | Awardit AB vs. SaltX Technology Holding | Awardit AB vs. Addtech AB | Awardit AB vs. Raketech Group 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |