Correlation Between SolTech Energy and FlexQube
Can any of the company-specific risk be diversified away by investing in both SolTech Energy and FlexQube 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 SolTech Energy and FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolTech Energy Sweden and FlexQube AB, you can compare the effects of market volatilities on SolTech Energy and FlexQube 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 SolTech Energy with a short position of FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolTech Energy and FlexQube.
Diversification Opportunities for SolTech Energy and FlexQube
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SolTech and FlexQube is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SolTech Energy Sweden and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube AB and SolTech Energy 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 SolTech Energy Sweden are associated (or correlated) with FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of SolTech Energy i.e., SolTech Energy and FlexQube go up and down completely randomly.
Pair Corralation between SolTech Energy and FlexQube
Assuming the 90 days trading horizon SolTech Energy Sweden is expected to under-perform the FlexQube. But the stock apears to be less risky and, when comparing its historical volatility, SolTech Energy Sweden is 1.03 times less risky than FlexQube. The stock trades about -0.12 of its potential returns per unit of risk. The FlexQube AB is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,390 in FlexQube AB on September 14, 2024 and sell it today you would lose (590.00) from holding FlexQube AB or give up 42.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SolTech Energy Sweden vs. FlexQube AB
Performance |
| Timeline |
| SolTech Energy Sweden |
| FlexQube AB |
SolTech Energy and FlexQube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolTech Energy and FlexQube
The main advantage of trading using opposite SolTech Energy and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolTech Energy position performs unexpectedly, FlexQube 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 FlexQube will offset losses from the drop in FlexQube's long position.| SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Sinch AB | SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Powercell Sweden |
| FlexQube vs. GomSpace Group AB | FlexQube vs. Fingerprint Cards AB | FlexQube vs. Maha Energy AB | FlexQube vs. SolTech Energy Sweden |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |