Correlation Between Saule Technologies and Immobile
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on Saule Technologies and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Immobile.
Diversification Opportunities for Saule Technologies and Immobile
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saule and Immobile is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of Saule Technologies i.e., Saule Technologies and Immobile go up and down completely randomly.
Pair Corralation between Saule Technologies and Immobile
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Immobile. In addition to that, Saule Technologies is 1.3 times more volatile than Immobile. It trades about -0.06 of its total potential returns per unit of risk. Immobile is currently generating about -0.02 per unit of volatility. If you would invest 259.00 in Immobile on September 2, 2024 and sell it today you would lose (62.00) from holding Immobile or give up 23.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Saule Technologies SA vs. Immobile
Performance |
| Timeline |
| Saule Technologies |
| Immobile |
Saule Technologies and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Immobile
The main advantage of trading using opposite Saule Technologies and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| Immobile vs. Carlson Investments SA | Immobile vs. Alior Bank SA | Immobile vs. Play2Chill SA | Immobile vs. Skyline Investment 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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