Correlation Between Unibap AB and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both Unibap AB and JonDeTech Sensors 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 Unibap AB and JonDeTech Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibap AB and JonDeTech Sensors, you can compare the effects of market volatilities on Unibap AB and JonDeTech Sensors 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 Unibap AB with a short position of JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibap AB and JonDeTech Sensors.
Diversification Opportunities for Unibap AB and JonDeTech Sensors
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unibap and JonDeTech is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Unibap AB and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors and Unibap 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 Unibap AB are associated (or correlated) with JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of Unibap AB i.e., Unibap AB and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between Unibap AB and JonDeTech Sensors
Assuming the 90 days trading horizon Unibap AB is expected to generate 0.59 times more return on investment than JonDeTech Sensors. However, Unibap AB is 1.69 times less risky than JonDeTech Sensors. It trades about -0.02 of its potential returns per unit of risk. JonDeTech Sensors is currently generating about -0.01 per unit of risk. If you would invest 1,685 in Unibap AB on August 27, 2024 and sell it today you would lose (1,344) from holding Unibap AB or give up 79.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibap AB vs. JonDeTech Sensors
Performance |
| Timeline |
| Unibap AB |
| JonDeTech Sensors |
Unibap AB and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibap AB and JonDeTech Sensors
The main advantage of trading using opposite Unibap AB and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibap AB position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.| Unibap AB vs. Acconeer AB | Unibap AB vs. BIMobject AB | Unibap AB vs. Gapwaves AB Series | Unibap AB vs. Sedana Medical AB |
| JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB | JonDeTech Sensors 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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