Correlation Between Saule Technologies and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Creotech Instruments 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 Creotech Instruments 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 Creotech Instruments SA, you can compare the effects of market volatilities on Saule Technologies and Creotech Instruments 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 Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Creotech Instruments.
Diversification Opportunities for Saule Technologies and Creotech Instruments
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saule and Creotech is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments 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 Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of Saule Technologies i.e., Saule Technologies and Creotech Instruments go up and down completely randomly.
Pair Corralation between Saule Technologies and Creotech Instruments
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Creotech Instruments. In addition to that, Saule Technologies is 1.15 times more volatile than Creotech Instruments SA. It trades about -0.04 of its total potential returns per unit of risk. Creotech Instruments SA is currently generating about 0.04 per unit of volatility. If you would invest 11,200 in Creotech Instruments SA on August 30, 2024 and sell it today you would earn a total of 3,800 from holding Creotech Instruments SA or generate 33.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Creotech Instruments SA
Performance |
| Timeline |
| Saule Technologies |
| Creotech Instruments |
Saule Technologies and Creotech Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Creotech Instruments
The main advantage of trading using opposite Saule Technologies and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. CFI Holding SA | Creotech Instruments vs. HM Inwest 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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