Correlation Between Solar AS and Flgger Group
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By analyzing existing cross correlation between Solar AS and Flgger group AS, you can compare the effects of market volatilities on Solar AS and Flgger Group 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 Solar AS with a short position of Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solar AS and Flgger Group.
Diversification Opportunities for Solar AS and Flgger Group
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Solar and Flgger is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Solar AS and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group AS and Solar AS 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 Solar AS are associated (or correlated) with Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of Solar AS i.e., Solar AS and Flgger Group go up and down completely randomly.
Pair Corralation between Solar AS and Flgger Group
Assuming the 90 days trading horizon Solar AS is expected to under-perform the Flgger Group. In addition to that, Solar AS is 2.55 times more volatile than Flgger group AS. It trades about -0.05 of its total potential returns per unit of risk. Flgger group AS is currently generating about -0.03 per unit of volatility. If you would invest 32,800 in Flgger group AS on August 29, 2024 and sell it today you would lose (200.00) from holding Flgger group AS or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solar AS vs. Flgger group AS
Performance |
| Timeline |
| Solar AS |
| Flgger group AS |
Solar AS and Flgger Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solar AS and Flgger Group
The main advantage of trading using opposite Solar AS and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solar AS position performs unexpectedly, Flgger Group 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 Flgger Group will offset losses from the drop in Flgger Group's long position.| Solar AS vs. Matas AS | Solar AS vs. NKT AS | Solar AS vs. ROCKWOOL International AS | Solar AS vs. Dampskibsselskabet Norden AS |
| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas AS |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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