Correlation Between Qleanair Holding and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Qleanair Holding and Clinical Laserthermia 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 Qleanair Holding and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qleanair Holding AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Qleanair Holding and Clinical Laserthermia 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 Qleanair Holding with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qleanair Holding and Clinical Laserthermia.
Diversification Opportunities for Qleanair Holding and Clinical Laserthermia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qleanair and Clinical is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qleanair Holding AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Qleanair 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 Qleanair Holding AB are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Qleanair Holding i.e., Qleanair Holding and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Qleanair Holding and Clinical Laserthermia
Assuming the 90 days trading horizon Qleanair Holding AB is expected to under-perform the Clinical Laserthermia. But the stock apears to be less risky and, when comparing its historical volatility, Qleanair Holding AB is 1.71 times less risky than Clinical Laserthermia. The stock trades about -0.35 of its potential returns per unit of risk. The Clinical Laserthermia Systems is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Clinical Laserthermia Systems on September 1, 2024 and sell it today you would lose (180.00) from holding Clinical Laserthermia Systems or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qleanair Holding AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Qleanair Holding |
| Clinical Laserthermia |
Qleanair Holding and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qleanair Holding and Clinical Laserthermia
The main advantage of trading using opposite Qleanair Holding and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qleanair Holding position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Qleanair Holding vs. Storytel AB | Qleanair Holding vs. Stillfront Group AB | Qleanair Holding vs. Hexatronic Group AB | Qleanair Holding vs. Jetpak Top Holding |
| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. BICO Group AB | Clinical Laserthermia vs. Bactiguard Holding AB | Clinical Laserthermia vs. Stille AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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