Correlation Between Saxlund Group and SolTech Energy
Can any of the company-specific risk be diversified away by investing in both Saxlund Group and SolTech Energy 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 SolTech Energy 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 SolTech Energy Sweden, you can compare the effects of market volatilities on Saxlund Group and SolTech Energy 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 SolTech Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saxlund Group and SolTech Energy.
Diversification Opportunities for Saxlund Group and SolTech Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saxlund and SolTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saxlund Group AB and SolTech Energy Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolTech Energy Sweden 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 SolTech Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolTech Energy Sweden has no effect on the direction of Saxlund Group i.e., Saxlund Group and SolTech Energy go up and down completely randomly.
Pair Corralation between Saxlund Group and SolTech Energy
If you would invest (100.00) in Saxlund Group AB on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Saxlund Group AB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Saxlund Group AB vs. SolTech Energy Sweden
Performance |
| Timeline |
| Saxlund Group AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SolTech Energy Sweden |
Saxlund Group and SolTech Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saxlund Group and SolTech Energy
The main advantage of trading using opposite Saxlund Group and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saxlund Group position performs unexpectedly, SolTech Energy 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 SolTech Energy will offset losses from the drop in SolTech Energy'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 |
| SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Sinch AB | SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Powercell Sweden |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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