Correlation Between Saxlund Group and AAC Clyde
Can any of the company-specific risk be diversified away by investing in both Saxlund Group and AAC Clyde 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 Saxlund Group and AAC Clyde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saxlund Group AB and AAC Clyde Space, you can compare the effects of market volatilities on Saxlund Group and AAC Clyde 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 Saxlund Group with a short position of AAC Clyde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saxlund Group and AAC Clyde.
Diversification Opportunities for Saxlund Group and AAC Clyde
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saxlund and AAC is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Saxlund Group AB and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space and Saxlund Group 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 Saxlund Group AB are associated (or correlated) with AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of Saxlund Group i.e., Saxlund Group and AAC Clyde go up and down completely randomly.
Pair Corralation between Saxlund Group and AAC Clyde
Assuming the 90 days trading horizon Saxlund Group AB is expected to under-perform the AAC Clyde. In addition to that, Saxlund Group is 1.82 times more volatile than AAC Clyde Space. It trades about -0.11 of its total potential returns per unit of risk. AAC Clyde Space is currently generating about -0.01 per unit of volatility. If you would invest 5,800 in AAC Clyde Space on September 3, 2024 and sell it today you would lose (1,000.00) from holding AAC Clyde Space or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saxlund Group AB vs. AAC Clyde Space
Performance |
| Timeline |
| Saxlund Group AB |
| AAC Clyde Space |
Saxlund Group and AAC Clyde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saxlund Group and AAC Clyde
The main advantage of trading using opposite Saxlund Group and AAC Clyde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saxlund Group position performs unexpectedly, AAC Clyde 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 AAC Clyde will offset losses from the drop in AAC Clyde's long position.| Saxlund Group vs. Spectrumone publ AB | Saxlund Group vs. Kancera AB | Saxlund Group vs. Cortus Energy AB | Saxlund Group vs. SolTech Energy Sweden |
| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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