Correlation Between SaltX Technology and Sileon AB
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Sileon 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 Sileon 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 Sileon AB, you can compare the effects of market volatilities on SaltX Technology and Sileon 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 Sileon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Sileon AB.
Diversification Opportunities for SaltX Technology and Sileon AB
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and Sileon is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Sileon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sileon 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 Sileon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sileon AB has no effect on the direction of SaltX Technology i.e., SaltX Technology and Sileon AB go up and down completely randomly.
Pair Corralation between SaltX Technology and Sileon AB
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 0.86 times more return on investment than Sileon AB. However, SaltX Technology Holding is 1.17 times less risky than Sileon AB. It trades about 0.1 of its potential returns per unit of risk. Sileon AB is currently generating about -0.47 per unit of risk. If you would invest 344.00 in SaltX Technology Holding on October 15, 2024 and sell it today you would earn a total of 15.00 from holding SaltX Technology Holding or generate 4.36% 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. Sileon AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Sileon AB |
SaltX Technology and Sileon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Sileon AB
The main advantage of trading using opposite SaltX Technology and Sileon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Sileon 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 Sileon AB will offset losses from the drop in Sileon 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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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