Correlation Between SaltX Technology and Systemair
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Systemair 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 Systemair 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 Systemair AB, you can compare the effects of market volatilities on SaltX Technology and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Systemair.
Diversification Opportunities for SaltX Technology and Systemair
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SaltX and Systemair is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of SaltX Technology i.e., SaltX Technology and Systemair go up and down completely randomly.
Pair Corralation between SaltX Technology and Systemair
Assuming the 90 days trading horizon SaltX Technology is expected to generate 1.05 times less return on investment than Systemair. In addition to that, SaltX Technology is 1.95 times more volatile than Systemair AB. It trades about 0.07 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.15 per unit of volatility. If you would invest 8,520 in Systemair AB on August 29, 2024 and sell it today you would earn a total of 690.00 from holding Systemair AB or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaltX Technology Holding vs. Systemair AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Systemair AB |
SaltX Technology and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Systemair
The main advantage of trading using opposite SaltX Technology and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair'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 |
| Systemair vs. Addtech AB | Systemair vs. Teqnion AB | Systemair vs. Vitec Software Group | Systemair vs. Lagercrantz 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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