Correlation Between Upsales Technology and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Kinnevik Investment 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 Kinnevik Investment 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 Kinnevik Investment AB, you can compare the effects of market volatilities on Upsales Technology and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Kinnevik Investment.
Diversification Opportunities for Upsales Technology and Kinnevik Investment
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Upsales and Kinnevik is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Upsales Technology i.e., Upsales Technology and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Upsales Technology and Kinnevik Investment
Assuming the 90 days trading horizon Upsales Technology AB is expected to generate 1.58 times more return on investment than Kinnevik Investment. However, Upsales Technology is 1.58 times more volatile than Kinnevik Investment AB. It trades about 0.1 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about 0.16 per unit of risk. If you would invest 3,000 in Upsales Technology AB on September 13, 2024 and sell it today you would earn a total of 180.00 from holding Upsales Technology AB or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. Kinnevik Investment AB
Performance |
| Timeline |
| Upsales Technology |
| Kinnevik Investment |
Upsales Technology and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Kinnevik Investment
The main advantage of trading using opposite Upsales Technology and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's 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 |
| Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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