Correlation Between SaltX Technology and Peab AB
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Peab 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 Peab 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 Peab AB, you can compare the effects of market volatilities on SaltX Technology and Peab 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Peab AB.
Diversification Opportunities for SaltX Technology and Peab AB
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SaltX and Peab is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of SaltX Technology i.e., SaltX Technology and Peab AB go up and down completely randomly.
Pair Corralation between SaltX Technology and Peab AB
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 3.38 times more return on investment than Peab AB. However, SaltX Technology is 3.38 times more volatile than Peab AB. It trades about 0.05 of its potential returns per unit of risk. Peab AB is currently generating about 0.1 per unit of risk. If you would invest 258.00 in SaltX Technology Holding on September 4, 2024 and sell it today you would earn a total of 124.00 from holding SaltX Technology Holding or generate 48.06% 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. Peab AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Peab AB |
SaltX Technology and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Peab AB
The main advantage of trading using opposite SaltX Technology and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Peab 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 Peab AB will offset losses from the drop in Peab 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 |
| Peab AB vs. USWE Sports AB | Peab AB vs. Nordea Bank Abp | Peab AB vs. Redsense Medical AB | Peab AB vs. Lundin Mining |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |