Correlation Between Saule Technologies and Baked Games
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Baked Games 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 Saule Technologies and Baked Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Baked Games SA, you can compare the effects of market volatilities on Saule Technologies and Baked Games 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 Saule Technologies with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Baked Games.
Diversification Opportunities for Saule Technologies and Baked Games
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saule and Baked is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games SA and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and Baked Games go up and down completely randomly.
Pair Corralation between Saule Technologies and Baked Games
Assuming the 90 days trading horizon Saule Technologies SA is expected to generate 0.9 times more return on investment than Baked Games. However, Saule Technologies SA is 1.11 times less risky than Baked Games. It trades about -0.02 of its potential returns per unit of risk. Baked Games SA is currently generating about -0.04 per unit of risk. If you would invest 257.00 in Saule Technologies SA on November 28, 2024 and sell it today you would lose (56.00) from holding Saule Technologies SA or give up 21.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Baked Games SA
Performance |
| Timeline |
| Saule Technologies |
| Baked Games SA |
Saule Technologies and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Baked Games
The main advantage of trading using opposite Saule Technologies and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Baked Games 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 Baked Games will offset losses from the drop in Baked Games' long position.| Saule Technologies vs. True Games Syndicate | Saule Technologies vs. Play2Chill SA | Saule Technologies vs. PLAYWAY SA | Saule Technologies vs. LSI Software SA |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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