Correlation Between Stillfront Group and Jetpak Top
Can any of the company-specific risk be diversified away by investing in both Stillfront Group and Jetpak Top 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 Stillfront Group and Jetpak Top into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillfront Group AB and Jetpak Top Holding, you can compare the effects of market volatilities on Stillfront Group and Jetpak Top 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 Stillfront Group with a short position of Jetpak Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Jetpak Top.
Diversification Opportunities for Stillfront Group and Jetpak Top
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stillfront and Jetpak is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Jetpak Top Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetpak Top Holding and Stillfront 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 Stillfront Group AB are associated (or correlated) with Jetpak Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetpak Top Holding has no effect on the direction of Stillfront Group i.e., Stillfront Group and Jetpak Top go up and down completely randomly.
Pair Corralation between Stillfront Group and Jetpak Top
Assuming the 90 days horizon Stillfront Group AB is expected to generate 2.38 times more return on investment than Jetpak Top. However, Stillfront Group is 2.38 times more volatile than Jetpak Top Holding. It trades about 0.01 of its potential returns per unit of risk. Jetpak Top Holding is currently generating about -0.07 per unit of risk. If you would invest 736.00 in Stillfront Group AB on September 1, 2024 and sell it today you would lose (2.00) from holding Stillfront Group AB or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Jetpak Top Holding
Performance |
| Timeline |
| Stillfront Group |
| Jetpak Top Holding |
Stillfront Group and Jetpak Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Jetpak Top
The main advantage of trading using opposite Stillfront Group and Jetpak Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, Jetpak Top 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 Jetpak Top will offset losses from the drop in Jetpak Top's long position.| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group vs. Evolution AB |
| Jetpak Top vs. Alimak Hek Group | Jetpak Top vs. Balco Group AB | Jetpak Top vs. Bulten AB | Jetpak Top vs. Rejlers 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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