Correlation Between Upsales Technology and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Goodbye Kansas 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 Upsales Technology and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upsales Technology AB and Goodbye Kansas Group, you can compare the effects of market volatilities on Upsales Technology and Goodbye Kansas 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 Upsales Technology with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Goodbye Kansas.
Diversification Opportunities for Upsales Technology and Goodbye Kansas
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Upsales and Goodbye is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and Upsales Technology 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 Upsales Technology AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of Upsales Technology i.e., Upsales Technology and Goodbye Kansas go up and down completely randomly.
Pair Corralation between Upsales Technology and Goodbye Kansas
Assuming the 90 days trading horizon Upsales Technology AB is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, Upsales Technology AB is 3.34 times less risky than Goodbye Kansas. The stock trades about -0.24 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 146.00 in Goodbye Kansas Group on August 25, 2024 and sell it today you would lose (7.00) from holding Goodbye Kansas Group or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| Upsales Technology |
| Goodbye Kansas Group |
Upsales Technology and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Goodbye Kansas
The main advantage of trading using opposite Upsales Technology and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software Group |
| Goodbye Kansas vs. Raketech Group Holding | Goodbye Kansas vs. FormPipe Software AB | Goodbye Kansas vs. New Nordic Healthbrands | Goodbye Kansas vs. Sdiptech 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |