Correlation Between Saule Technologies and Komputronik
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Komputronik 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 Komputronik 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 Komputronik SA, you can compare the effects of market volatilities on Saule Technologies and Komputronik 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 Komputronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Komputronik.
Diversification Opportunities for Saule Technologies and Komputronik
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saule and Komputronik is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Komputronik SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komputronik 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 Komputronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komputronik SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and Komputronik go up and down completely randomly.
Pair Corralation between Saule Technologies and Komputronik
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Komputronik. But the stock apears to be less risky and, when comparing its historical volatility, Saule Technologies SA is 1.02 times less risky than Komputronik. The stock trades about -0.05 of its potential returns per unit of risk. The Komputronik SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Komputronik SA on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Komputronik SA or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Komputronik SA
Performance |
| Timeline |
| Saule Technologies |
| Komputronik SA |
Saule Technologies and Komputronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Komputronik
The main advantage of trading using opposite Saule Technologies and Komputronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Komputronik 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 Komputronik will offset losses from the drop in Komputronik's long position.| Saule Technologies vs. Enter Air SA | Saule Technologies vs. SOFTWARE MANSION SPOLKA | Saule Technologies vs. Medicalg | Saule Technologies vs. Kool2play SA |
| Komputronik vs. PLAYWAY SA | Komputronik vs. SOFTWARE MANSION SPOLKA | Komputronik vs. GreenX Metals | Komputronik vs. Saule Technologies 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |