Correlation Between Upsales Technology and Swedencare Publ
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Swedencare Publ 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 Swedencare Publ 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 Swedencare publ AB, you can compare the effects of market volatilities on Upsales Technology and Swedencare Publ 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 Swedencare Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Swedencare Publ.
Diversification Opportunities for Upsales Technology and Swedencare Publ
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Upsales and Swedencare is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Swedencare publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedencare publ 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 Swedencare Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedencare publ AB has no effect on the direction of Upsales Technology i.e., Upsales Technology and Swedencare Publ go up and down completely randomly.
Pair Corralation between Upsales Technology and Swedencare Publ
Assuming the 90 days trading horizon Upsales Technology AB is expected to generate 1.17 times more return on investment than Swedencare Publ. However, Upsales Technology is 1.17 times more volatile than Swedencare publ AB. It trades about 0.2 of its potential returns per unit of risk. Swedencare publ AB is currently generating about -0.3 per unit of risk. If you would invest 3,120 in Upsales Technology AB on December 2, 2024 and sell it today you would earn a total of 380.00 from holding Upsales Technology AB or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. Swedencare publ AB
Performance |
| Timeline |
| Upsales Technology |
| Swedencare publ AB |
Upsales Technology and Swedencare Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Swedencare Publ
The main advantage of trading using opposite Upsales Technology and Swedencare Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, Swedencare Publ 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 Swedencare Publ will offset losses from the drop in Swedencare Publ's long position.| Upsales Technology vs. Lime Technologies AB | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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