Correlation Between SaltX Technology and HAKI Safety
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and HAKI Safety 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 HAKI Safety 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 HAKI Safety A, you can compare the effects of market volatilities on SaltX Technology and HAKI Safety 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 HAKI Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and HAKI Safety.
Diversification Opportunities for SaltX Technology and HAKI Safety
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SaltX and HAKI is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and HAKI Safety A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKI Safety A 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 HAKI Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKI Safety A has no effect on the direction of SaltX Technology i.e., SaltX Technology and HAKI Safety go up and down completely randomly.
Pair Corralation between SaltX Technology and HAKI Safety
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 1.15 times more return on investment than HAKI Safety. However, SaltX Technology is 1.15 times more volatile than HAKI Safety A. It trades about 0.07 of its potential returns per unit of risk. HAKI Safety A is currently generating about 0.05 per unit of risk. If you would invest 322.00 in SaltX Technology Holding on September 12, 2024 and sell it today you would earn a total of 18.00 from holding SaltX Technology Holding or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaltX Technology Holding vs. HAKI Safety A
Performance |
| Timeline |
| SaltX Technology Holding |
| HAKI Safety A |
SaltX Technology and HAKI Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and HAKI Safety
The main advantage of trading using opposite SaltX Technology and HAKI Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, HAKI Safety 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 HAKI Safety will offset losses from the drop in HAKI Safety's long position.| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
| HAKI Safety vs. Arion banki hf | HAKI Safety vs. Invisio Communications AB | HAKI Safety vs. Arctic Blue Beverages | HAKI Safety vs. Swedbank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |