Correlation Between Saule Technologies and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Carlson Investments 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 Carlson Investments 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 Carlson Investments SA, you can compare the effects of market volatilities on Saule Technologies and Carlson Investments 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 Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Carlson Investments.
Diversification Opportunities for Saule Technologies and Carlson Investments
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saule and Carlson is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments 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 Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Saule Technologies i.e., Saule Technologies and Carlson Investments go up and down completely randomly.
Pair Corralation between Saule Technologies and Carlson Investments
Assuming the 90 days trading horizon Saule Technologies SA is expected to generate 0.56 times more return on investment than Carlson Investments. However, Saule Technologies SA is 1.79 times less risky than Carlson Investments. It trades about 0.39 of its potential returns per unit of risk. Carlson Investments SA is currently generating about 0.1 per unit of risk. If you would invest 122.00 in Saule Technologies SA on November 28, 2024 and sell it today you would earn a total of 79.00 from holding Saule Technologies SA or generate 64.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Carlson Investments SA
Performance |
| Timeline |
| Saule Technologies |
| Carlson Investments |
Saule Technologies and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Carlson Investments
The main advantage of trading using opposite Saule Technologies and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| Saule Technologies vs. True Games Syndicate | Saule Technologies vs. Play2Chill SA | Saule Technologies vs. PLAYWAY SA | Saule Technologies vs. LSI Software SA |
| Carlson Investments vs. Gamedust SA | Carlson Investments vs. VR Factory Games | Carlson Investments vs. MW Trade SA | Carlson Investments vs. Movie Games SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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