Correlation Between Qleanair Holding and NOTE AB
Can any of the company-specific risk be diversified away by investing in both Qleanair Holding and NOTE 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 Qleanair Holding and NOTE AB 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 NOTE AB, you can compare the effects of market volatilities on Qleanair Holding and NOTE 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 Qleanair Holding with a short position of NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qleanair Holding and NOTE AB.
Diversification Opportunities for Qleanair Holding and NOTE AB
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qleanair and NOTE is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Qleanair Holding AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE AB 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 NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Qleanair Holding i.e., Qleanair Holding and NOTE AB go up and down completely randomly.
Pair Corralation between Qleanair Holding and NOTE AB
Assuming the 90 days trading horizon Qleanair Holding AB is expected to generate 0.95 times more return on investment than NOTE AB. However, Qleanair Holding AB is 1.06 times less risky than NOTE AB. It trades about -0.02 of its potential returns per unit of risk. NOTE AB is currently generating about -0.05 per unit of risk. If you would invest 2,279 in Qleanair Holding AB on August 31, 2024 and sell it today you would lose (584.00) from holding Qleanair Holding AB or give up 25.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Qleanair Holding AB vs. NOTE AB
Performance |
| Timeline |
| Qleanair Holding |
| NOTE AB |
Qleanair Holding and NOTE AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qleanair Holding and NOTE AB
The main advantage of trading using opposite Qleanair Holding and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qleanair Holding position performs unexpectedly, NOTE 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 NOTE AB will offset losses from the drop in NOTE AB'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 |
| NOTE AB vs. Nordea Bank Abp | NOTE AB vs. Qleanair Holding AB | NOTE AB vs. Train Alliance Sweden | NOTE AB vs. SaveLend Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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