Correlation Between Troax Group and Fenix Outdoor
Can any of the company-specific risk be diversified away by investing in both Troax Group and Fenix Outdoor 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 Troax Group and Fenix Outdoor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Troax Group AB and Fenix Outdoor International, you can compare the effects of market volatilities on Troax Group and Fenix Outdoor 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 Troax Group with a short position of Fenix Outdoor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Troax Group and Fenix Outdoor.
Diversification Opportunities for Troax Group and Fenix Outdoor
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Troax and Fenix is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Troax Group AB and Fenix Outdoor International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenix Outdoor Intern and Troax Group 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 Troax Group AB are associated (or correlated) with Fenix Outdoor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenix Outdoor Intern has no effect on the direction of Troax Group i.e., Troax Group and Fenix Outdoor go up and down completely randomly.
Pair Corralation between Troax Group and Fenix Outdoor
Assuming the 90 days trading horizon Troax Group AB is expected to under-perform the Fenix Outdoor. In addition to that, Troax Group is 1.25 times more volatile than Fenix Outdoor International. It trades about -0.13 of its total potential returns per unit of risk. Fenix Outdoor International is currently generating about 0.01 per unit of volatility. If you would invest 59,900 in Fenix Outdoor International on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Fenix Outdoor International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Troax Group AB vs. Fenix Outdoor International
Performance |
| Timeline |
| Troax Group AB |
| Fenix Outdoor Intern |
Troax Group and Fenix Outdoor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Troax Group and Fenix Outdoor
The main advantage of trading using opposite Troax Group and Fenix Outdoor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Troax Group position performs unexpectedly, Fenix Outdoor 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 Fenix Outdoor will offset losses from the drop in Fenix Outdoor's long position.| Troax Group vs. Bufab Holding AB | Troax Group vs. Thule Group AB | Troax Group vs. Beijer Ref AB | Troax Group vs. Lifco AB |
| Fenix Outdoor vs. Thule Group AB | Fenix Outdoor vs. Nolato AB | Fenix Outdoor vs. Holmen AB | Fenix Outdoor vs. Troax Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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