Correlation Between Upsales Technology and Peab AB
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Peab AB 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 Peab AB 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 Peab AB, you can compare the effects of market volatilities on Upsales Technology and Peab AB 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Peab AB.
Diversification Opportunities for Upsales Technology and Peab AB
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Upsales and Peab is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab AB 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Upsales Technology i.e., Upsales Technology and Peab AB go up and down completely randomly.
Pair Corralation between Upsales Technology and Peab AB
Assuming the 90 days trading horizon Upsales Technology is expected to generate 14.17 times less return on investment than Peab AB. In addition to that, Upsales Technology is 1.49 times more volatile than Peab AB. It trades about 0.0 of its total potential returns per unit of risk. Peab AB is currently generating about 0.09 per unit of volatility. If you would invest 4,407 in Peab AB on September 12, 2024 and sell it today you would earn a total of 3,773 from holding Peab AB or generate 85.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. Peab AB
Performance |
| Timeline |
| Upsales Technology |
| Peab AB |
Upsales Technology and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Peab AB
The main advantage of trading using opposite Upsales Technology and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, Peab AB 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 Peab AB will offset losses from the drop in Peab AB'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 |
| Peab AB vs. Bravida Holding AB | Peab AB vs. Instalco Intressenter AB | Peab AB vs. NCC AB | Peab AB vs. Fasadgruppen 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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