Correlation Between SaltX Technology and Mofast AB
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Mofast 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 SaltX Technology and Mofast AB 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 Mofast AB, you can compare the effects of market volatilities on SaltX Technology and Mofast 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 SaltX Technology with a short position of Mofast AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Mofast AB.
Diversification Opportunities for SaltX Technology and Mofast AB
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and Mofast is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Mofast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mofast 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 Mofast AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mofast AB has no effect on the direction of SaltX Technology i.e., SaltX Technology and Mofast AB go up and down completely randomly.
Pair Corralation between SaltX Technology and Mofast AB
Assuming the 90 days trading horizon SaltX Technology Holding is expected to under-perform the Mofast AB. In addition to that, SaltX Technology is 1.14 times more volatile than Mofast AB. It trades about -0.04 of its total potential returns per unit of risk. Mofast AB is currently generating about 0.06 per unit of volatility. If you would invest 1,240 in Mofast AB on September 5, 2024 and sell it today you would earn a total of 260.00 from holding Mofast AB or generate 20.97% 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. Mofast AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Mofast AB |
SaltX Technology and Mofast AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Mofast AB
The main advantage of trading using opposite SaltX Technology and Mofast AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Mofast 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 Mofast AB will offset losses from the drop in Mofast AB'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 |
| Mofast AB vs. Nordic Iron Ore | Mofast AB vs. Upsales Technology AB | Mofast AB vs. SaltX Technology Holding | Mofast AB vs. Arctic Blue Beverages |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |