Correlation Between Saule Technologies and Wikana SA
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Wikana SA 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 Wikana SA 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 Wikana SA, you can compare the effects of market volatilities on Saule Technologies and Wikana SA 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 Wikana SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Wikana SA.
Diversification Opportunities for Saule Technologies and Wikana SA
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saule and Wikana is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Wikana SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wikana 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 Wikana SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wikana SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and Wikana SA go up and down completely randomly.
Pair Corralation between Saule Technologies and Wikana SA
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Wikana SA. But the stock apears to be less risky and, when comparing its historical volatility, Saule Technologies SA is 1.31 times less risky than Wikana SA. The stock trades about -0.06 of its potential returns per unit of risk. The Wikana SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 288.00 in Wikana SA on September 1, 2024 and sell it today you would earn a total of 402.00 from holding Wikana SA or generate 139.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Saule Technologies SA vs. Wikana SA
Performance |
| Timeline |
| Saule Technologies |
| Wikana SA |
Saule Technologies and Wikana SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Wikana SA
The main advantage of trading using opposite Saule Technologies and Wikana SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Wikana SA 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 Wikana SA will offset losses from the drop in Wikana SA's long position.| Saule Technologies vs. SOFTWARE MANSION SPOLKA | Saule Technologies vs. Investment Friends Capital | Saule Technologies vs. Cloud Technologies SA | Saule Technologies vs. Quantum Software SA |
| Wikana SA vs. Intersport Polska SA | Wikana SA vs. Saule Technologies SA | Wikana SA vs. GreenX Metals | Wikana SA vs. Carlson Investments 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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