Correlation Between Sitowise Group and Solteq PLC
Can any of the company-specific risk be diversified away by investing in both Sitowise Group and Solteq PLC 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 Sitowise Group and Solteq PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitowise Group Oyj and Solteq PLC, you can compare the effects of market volatilities on Sitowise Group and Solteq PLC 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 Sitowise Group with a short position of Solteq PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitowise Group and Solteq PLC.
Diversification Opportunities for Sitowise Group and Solteq PLC
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sitowise and Solteq is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sitowise Group Oyj and Solteq PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solteq PLC and Sitowise 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 Sitowise Group Oyj are associated (or correlated) with Solteq PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solteq PLC has no effect on the direction of Sitowise Group i.e., Sitowise Group and Solteq PLC go up and down completely randomly.
Pair Corralation between Sitowise Group and Solteq PLC
Assuming the 90 days trading horizon Sitowise Group Oyj is expected to generate 1.04 times more return on investment than Solteq PLC. However, Sitowise Group is 1.04 times more volatile than Solteq PLC. It trades about 0.08 of its potential returns per unit of risk. Solteq PLC is currently generating about -0.07 per unit of risk. If you would invest 264.00 in Sitowise Group Oyj on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Sitowise Group Oyj or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitowise Group Oyj vs. Solteq PLC
Performance |
| Timeline |
| Sitowise Group Oyj |
| Solteq PLC |
Sitowise Group and Solteq PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitowise Group and Solteq PLC
The main advantage of trading using opposite Sitowise Group and Solteq PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitowise Group position performs unexpectedly, Solteq PLC 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 Solteq PLC will offset losses from the drop in Solteq PLC's long position.| Sitowise Group vs. TietoEVRY Corp | Sitowise Group vs. Tokmanni Group Oyj | Sitowise Group vs. Harvia Oyj | Sitowise Group vs. Puuilo Oyj |
| Solteq PLC vs. Tecnotree Oyj | Solteq PLC vs. Harvia Oyj | Solteq PLC vs. Kamux Suomi Oy | Solteq PLC vs. Qt Group Oyj |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |