Correlation Between Sdiptech and AVTECH Sweden
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By analyzing existing cross correlation between Sdiptech AB and AVTECH Sweden AB, you can compare the effects of market volatilities on Sdiptech and AVTECH Sweden 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 Sdiptech with a short position of AVTECH Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and AVTECH Sweden.
Diversification Opportunities for Sdiptech and AVTECH Sweden
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sdiptech and AVTECH is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and AVTECH Sweden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVTECH Sweden AB and Sdiptech 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 Sdiptech AB are associated (or correlated) with AVTECH Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVTECH Sweden AB has no effect on the direction of Sdiptech i.e., Sdiptech and AVTECH Sweden go up and down completely randomly.
Pair Corralation between Sdiptech and AVTECH Sweden
Assuming the 90 days trading horizon Sdiptech AB is expected to generate 0.17 times more return on investment than AVTECH Sweden. However, Sdiptech AB is 6.05 times less risky than AVTECH Sweden. It trades about -0.09 of its potential returns per unit of risk. AVTECH Sweden AB is currently generating about -0.12 per unit of risk. If you would invest 12,400 in Sdiptech AB on August 29, 2024 and sell it today you would lose (150.00) from holding Sdiptech AB or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. AVTECH Sweden AB
Performance |
| Timeline |
| Sdiptech AB |
| AVTECH Sweden AB |
Sdiptech and AVTECH Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and AVTECH Sweden
The main advantage of trading using opposite Sdiptech and AVTECH Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, AVTECH Sweden 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 AVTECH Sweden will offset losses from the drop in AVTECH Sweden's long position.| Sdiptech vs. AB Sagax | Sdiptech vs. ALM Equity AB | Sdiptech vs. KABE Group AB | Sdiptech vs. IAR Systems Group |
| AVTECH Sweden vs. AroCell AB | AVTECH Sweden vs. aXichem AB | AVTECH Sweden vs. Gaming Corps AB | AVTECH Sweden vs. Alelion Energy Systems |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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