Correlation Between SaltX Technology and Maha Energy
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Maha Energy 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 Maha Energy 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 Maha Energy AB, you can compare the effects of market volatilities on SaltX Technology and Maha Energy 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 Maha Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Maha Energy.
Diversification Opportunities for SaltX Technology and Maha Energy
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and Maha is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Maha Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maha Energy AB 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 Maha Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maha Energy AB has no effect on the direction of SaltX Technology i.e., SaltX Technology and Maha Energy go up and down completely randomly.
Pair Corralation between SaltX Technology and Maha Energy
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 3.38 times more return on investment than Maha Energy. However, SaltX Technology is 3.38 times more volatile than Maha Energy AB. It trades about 0.04 of its potential returns per unit of risk. Maha Energy AB is currently generating about 0.1 per unit of risk. If you would invest 341.00 in SaltX Technology Holding on August 26, 2024 and sell it today you would earn a total of 7.00 from holding SaltX Technology Holding or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaltX Technology Holding vs. Maha Energy AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Maha Energy AB |
SaltX Technology and Maha Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Maha Energy
The main advantage of trading using opposite SaltX Technology and Maha Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Maha Energy 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 Maha Energy will offset losses from the drop in Maha Energy'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 |
| Maha Energy vs. GomSpace Group AB | Maha Energy vs. SaltX Technology Holding | Maha Energy vs. Ambu AS | Maha Energy vs. Fingerprint Cards 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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