Correlation Between Spectrumone Publ and Greater Than
Can any of the company-specific risk be diversified away by investing in both Spectrumone Publ and Greater Than 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 Spectrumone Publ and Greater Than into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrumone publ AB and Greater Than AB, you can compare the effects of market volatilities on Spectrumone Publ and Greater Than 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 Spectrumone Publ with a short position of Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrumone Publ and Greater Than.
Diversification Opportunities for Spectrumone Publ and Greater Than
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spectrumone and Greater is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Spectrumone publ AB and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than AB and Spectrumone Publ 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 Spectrumone publ AB are associated (or correlated) with Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of Spectrumone Publ i.e., Spectrumone Publ and Greater Than go up and down completely randomly.
Pair Corralation between Spectrumone Publ and Greater Than
Assuming the 90 days trading horizon Spectrumone publ AB is expected to generate 0.95 times more return on investment than Greater Than. However, Spectrumone publ AB is 1.05 times less risky than Greater Than. It trades about -0.12 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.27 per unit of risk. If you would invest 37.00 in Spectrumone publ AB on August 29, 2024 and sell it today you would lose (5.00) from holding Spectrumone publ AB or give up 13.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrumone publ AB vs. Greater Than AB
Performance |
| Timeline |
| Spectrumone publ |
| Greater Than AB |
Spectrumone Publ and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrumone Publ and Greater Than
The main advantage of trading using opposite Spectrumone Publ and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrumone Publ position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.| Spectrumone Publ vs. Kancera AB | Spectrumone Publ vs. Terranet AB | Spectrumone Publ vs. Divio Technologies AB | Spectrumone Publ vs. Cantargia AB |
| Greater Than vs. Spectrumone publ AB | Greater Than vs. Media and Games | Greater Than vs. Enersize Oy | Greater Than vs. Cantargia AB |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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