Correlation Between Serstech and Triboron International
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By analyzing existing cross correlation between Serstech AB and Triboron International AB, you can compare the effects of market volatilities on Serstech and Triboron International 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 Serstech with a short position of Triboron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serstech and Triboron International.
Diversification Opportunities for Serstech and Triboron International
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Serstech and Triboron is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Serstech AB and Triboron International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triboron International and Serstech 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 Serstech AB are associated (or correlated) with Triboron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triboron International has no effect on the direction of Serstech i.e., Serstech and Triboron International go up and down completely randomly.
Pair Corralation between Serstech and Triboron International
Assuming the 90 days trading horizon Serstech AB is expected to generate 1.34 times more return on investment than Triboron International. However, Serstech is 1.34 times more volatile than Triboron International AB. It trades about 0.22 of its potential returns per unit of risk. Triboron International AB is currently generating about -0.34 per unit of risk. If you would invest 102.00 in Serstech AB on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Serstech AB or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Serstech AB vs. Triboron International AB
Performance |
| Timeline |
| Serstech AB |
| Triboron International |
Serstech and Triboron International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Serstech and Triboron International
The main advantage of trading using opposite Serstech and Triboron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serstech position performs unexpectedly, Triboron International 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 Triboron International will offset losses from the drop in Triboron International's long position.The idea behind Serstech AB and Triboron International AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Triboron International vs. Svenska Aerogel Holding | Triboron International vs. Serstech AB | Triboron International vs. Clean Motion AB | Triboron International vs. Cortus Energy 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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