Correlation Between Spectrumone Publ and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Spectrumone Publ and Kancera AB 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 Kancera AB 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 Kancera AB, you can compare the effects of market volatilities on Spectrumone Publ and Kancera AB 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 Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrumone Publ and Kancera AB.
Diversification Opportunities for Spectrumone Publ and Kancera AB
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spectrumone and Kancera is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Spectrumone publ AB and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera 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 Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Spectrumone Publ i.e., Spectrumone Publ and Kancera AB go up and down completely randomly.
Pair Corralation between Spectrumone Publ and Kancera AB
Assuming the 90 days trading horizon Spectrumone Publ is expected to generate 1.04 times less return on investment than Kancera AB. But when comparing it to its historical volatility, Spectrumone publ AB is 1.36 times less risky than Kancera AB. It trades about 0.02 of its potential returns per unit of risk. Kancera AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Kancera AB on August 28, 2024 and sell it today you would lose (100.00) from holding Kancera AB or give up 47.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrumone publ AB vs. Kancera AB
Performance |
| Timeline |
| Spectrumone publ |
| Kancera AB |
Spectrumone Publ and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrumone Publ and Kancera AB
The main advantage of trading using opposite Spectrumone Publ and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrumone Publ position performs unexpectedly, Kancera AB 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 Kancera AB will offset losses from the drop in Kancera AB's long position.| Spectrumone Publ vs. Media and Games | Spectrumone Publ vs. Enersize Oy | Spectrumone Publ vs. Cantargia AB |
| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |