Correlation Between Saule Technologies and Fabryki Mebli
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Fabryki Mebli 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 Fabryki Mebli 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 Fabryki Mebli Forte, you can compare the effects of market volatilities on Saule Technologies and Fabryki Mebli 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 Fabryki Mebli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Fabryki Mebli.
Diversification Opportunities for Saule Technologies and Fabryki Mebli
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saule and Fabryki is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Fabryki Mebli Forte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabryki Mebli Forte 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 Fabryki Mebli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabryki Mebli Forte has no effect on the direction of Saule Technologies i.e., Saule Technologies and Fabryki Mebli go up and down completely randomly.
Pair Corralation between Saule Technologies and Fabryki Mebli
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Fabryki Mebli. In addition to that, Saule Technologies is 2.1 times more volatile than Fabryki Mebli Forte. It trades about -0.08 of its total potential returns per unit of risk. Fabryki Mebli Forte is currently generating about 0.07 per unit of volatility. If you would invest 1,960 in Fabryki Mebli Forte on September 14, 2024 and sell it today you would earn a total of 670.00 from holding Fabryki Mebli Forte or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Saule Technologies SA vs. Fabryki Mebli Forte
Performance |
| Timeline |
| Saule Technologies |
| Fabryki Mebli Forte |
Saule Technologies and Fabryki Mebli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Fabryki Mebli
The main advantage of trading using opposite Saule Technologies and Fabryki Mebli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Fabryki Mebli 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 Fabryki Mebli will offset losses from the drop in Fabryki Mebli's long position.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| Fabryki Mebli vs. New Tech Venture | Fabryki Mebli vs. Noble Financials SA | Fabryki Mebli vs. Carlson Investments SA | Fabryki Mebli vs. Medicalg |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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