Correlation Between SaltX Technology and AAC Clyde
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and AAC Clyde 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 SaltX Technology and AAC Clyde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaltX Technology Holding and AAC Clyde Space, you can compare the effects of market volatilities on SaltX Technology and AAC Clyde 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 SaltX Technology with a short position of AAC Clyde. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and AAC Clyde.
Diversification Opportunities for SaltX Technology and AAC Clyde
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between SaltX and AAC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space and SaltX Technology 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 SaltX Technology Holding are associated (or correlated) with AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of SaltX Technology i.e., SaltX Technology and AAC Clyde go up and down completely randomly.
Pair Corralation between SaltX Technology and AAC Clyde
Assuming the 90 days trading horizon SaltX Technology is expected to generate 1.0 times less return on investment than AAC Clyde. In addition to that, SaltX Technology is 1.1 times more volatile than AAC Clyde Space. It trades about 0.11 of its total potential returns per unit of risk. AAC Clyde Space is currently generating about 0.12 per unit of volatility. If you would invest 3,475 in AAC Clyde Space on August 28, 2024 and sell it today you would earn a total of 1,020 from holding AAC Clyde Space or generate 29.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaltX Technology Holding vs. AAC Clyde Space
Performance |
| Timeline |
| SaltX Technology Holding |
| AAC Clyde Space |
SaltX Technology and AAC Clyde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and AAC Clyde
The main advantage of trading using opposite SaltX Technology and AAC Clyde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, AAC Clyde 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 AAC Clyde will offset losses from the drop in AAC Clyde's long position.| SaltX Technology vs. Lagercrantz Group AB | SaltX Technology vs. Addtech AB | SaltX Technology vs. AddLife AB | SaltX Technology vs. Bufab Holding AB |
| AAC Clyde vs. aXichem AB | AAC Clyde vs. Gaming Corps AB | AAC Clyde vs. Cantargia AB | AAC Clyde vs. KABE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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