Correlation Between Stille AB and OssDsign
Can any of the company-specific risk be diversified away by investing in both Stille AB and OssDsign 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 Stille AB and OssDsign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stille AB and OssDsign AB, you can compare the effects of market volatilities on Stille AB and OssDsign 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 Stille AB with a short position of OssDsign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stille AB and OssDsign.
Diversification Opportunities for Stille AB and OssDsign
Significant diversification
The 3 months correlation between Stille and OssDsign is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Stille AB and OssDsign AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OssDsign AB and Stille AB 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 Stille AB are associated (or correlated) with OssDsign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OssDsign AB has no effect on the direction of Stille AB i.e., Stille AB and OssDsign go up and down completely randomly.
Pair Corralation between Stille AB and OssDsign
Assuming the 90 days trading horizon Stille AB is expected to generate 7.86 times less return on investment than OssDsign. But when comparing it to its historical volatility, Stille AB is 2.48 times less risky than OssDsign. It trades about 0.13 of its potential returns per unit of risk. OssDsign AB is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 622.00 in OssDsign AB on September 3, 2024 and sell it today you would earn a total of 278.00 from holding OssDsign AB or generate 44.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stille AB vs. OssDsign AB
Performance |
| Timeline |
| Stille AB |
| OssDsign AB |
Stille AB and OssDsign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stille AB and OssDsign
The main advantage of trading using opposite Stille AB and OssDsign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stille AB position performs unexpectedly, OssDsign 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 OssDsign will offset losses from the drop in OssDsign's long position.| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis AB |
| OssDsign vs. iZafe Group AB | OssDsign vs. Triboron International AB | OssDsign vs. KABE Group AB | OssDsign vs. IAR Systems Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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