Correlation Between Troax Group and Klaria Pharma
Can any of the company-specific risk be diversified away by investing in both Troax Group and Klaria Pharma 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 Klaria Pharma 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 Klaria Pharma Holding, you can compare the effects of market volatilities on Troax Group and Klaria Pharma 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 Klaria Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Troax Group and Klaria Pharma.
Diversification Opportunities for Troax Group and Klaria Pharma
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Troax and Klaria is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Troax Group AB and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding 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 Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of Troax Group i.e., Troax Group and Klaria Pharma go up and down completely randomly.
Pair Corralation between Troax Group and Klaria Pharma
Assuming the 90 days trading horizon Troax Group AB is expected to generate 0.26 times more return on investment than Klaria Pharma. However, Troax Group AB is 3.89 times less risky than Klaria Pharma. It trades about 0.02 of its potential returns per unit of risk. Klaria Pharma Holding is currently generating about -0.17 per unit of risk. If you would invest 21,000 in Troax Group AB on August 25, 2024 and sell it today you would earn a total of 250.00 from holding Troax Group AB or generate 1.19% 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. Klaria Pharma Holding
Performance |
| Timeline |
| Troax Group AB |
| Klaria Pharma Holding |
Troax Group and Klaria Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Troax Group and Klaria Pharma
The main advantage of trading using opposite Troax Group and Klaria Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Troax Group position performs unexpectedly, Klaria Pharma 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 Klaria Pharma will offset losses from the drop in Klaria Pharma'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 |
| Klaria Pharma vs. Stille AB | Klaria Pharma vs. Midsona AB | Klaria Pharma vs. C Rad AB | Klaria Pharma vs. Novotek 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 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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