Correlation Between SECITS Holding and Image Systems
Can any of the company-specific risk be diversified away by investing in both SECITS Holding and Image Systems 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 SECITS Holding and Image Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SECITS Holding AB and Image Systems AB, you can compare the effects of market volatilities on SECITS Holding and Image Systems 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 SECITS Holding with a short position of Image Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECITS Holding and Image Systems.
Diversification Opportunities for SECITS Holding and Image Systems
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SECITS and Image is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SECITS Holding AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems AB and SECITS Holding 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 SECITS Holding AB are associated (or correlated) with Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of SECITS Holding i.e., SECITS Holding and Image Systems go up and down completely randomly.
Pair Corralation between SECITS Holding and Image Systems
Assuming the 90 days trading horizon SECITS Holding AB is expected to under-perform the Image Systems. In addition to that, SECITS Holding is 3.03 times more volatile than Image Systems AB. It trades about -0.02 of its total potential returns per unit of risk. Image Systems AB is currently generating about 0.06 per unit of volatility. If you would invest 133.00 in Image Systems AB on September 12, 2024 and sell it today you would earn a total of 84.00 from holding Image Systems AB or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECITS Holding AB vs. Image Systems AB
Performance |
| Timeline |
| SECITS Holding AB |
| Image Systems AB |
SECITS Holding and Image Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECITS Holding and Image Systems
The main advantage of trading using opposite SECITS Holding and Image Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECITS Holding position performs unexpectedly, Image Systems 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 Image Systems will offset losses from the drop in Image Systems' long position.| SECITS Holding vs. Enersize Oy | SECITS Holding vs. Zaplox AB | SECITS Holding vs. XMReality AB | SECITS Holding vs. Sonetel AB |
| Image Systems vs. AB SKF | Image Systems vs. Tele2 AB | Image Systems vs. Sandvik AB | Image Systems vs. Skanska 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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