Correlation Between SaltX Technology and NOTE AB
Can any of the company-specific risk be diversified away by investing in both SaltX Technology 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 SaltX Technology and NOTE 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 NOTE AB, you can compare the effects of market volatilities on SaltX Technology 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 SaltX Technology with a short position of NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and NOTE AB.
Diversification Opportunities for SaltX Technology and NOTE AB
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and NOTE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE 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 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 SaltX Technology i.e., SaltX Technology and NOTE AB go up and down completely randomly.
Pair Corralation between SaltX Technology and NOTE AB
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 3.64 times more return on investment than NOTE AB. However, SaltX Technology is 3.64 times more volatile than NOTE AB. It trades about 0.06 of its potential returns per unit of risk. NOTE AB is currently generating about -0.17 per unit of risk. If you would invest 367.00 in SaltX Technology Holding on August 31, 2024 and sell it today you would earn a total of 15.00 from holding SaltX Technology Holding or generate 4.09% 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. NOTE AB
Performance |
| Timeline |
| SaltX Technology Holding |
| NOTE AB |
SaltX Technology and NOTE AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and NOTE AB
The main advantage of trading using opposite SaltX Technology and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology 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.| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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