Correlation Between Upsales Technology and Smart Eye
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Smart Eye 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 Smart Eye 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 Smart Eye AB, you can compare the effects of market volatilities on Upsales Technology and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Smart Eye.
Diversification Opportunities for Upsales Technology and Smart Eye
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Upsales and Smart is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Upsales Technology i.e., Upsales Technology and Smart Eye go up and down completely randomly.
Pair Corralation between Upsales Technology and Smart Eye
Assuming the 90 days trading horizon Upsales Technology AB is expected to generate 0.82 times more return on investment than Smart Eye. However, Upsales Technology AB is 1.23 times less risky than Smart Eye. It trades about 0.18 of its potential returns per unit of risk. Smart Eye AB is currently generating about -0.43 per unit of risk. If you would invest 3,000 in Upsales Technology AB on October 26, 2024 and sell it today you would earn a total of 260.00 from holding Upsales Technology AB or generate 8.67% 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. Smart Eye AB
Performance |
| Timeline |
| Upsales Technology |
| Smart Eye AB |
Upsales Technology and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Smart Eye
The main advantage of trading using opposite Upsales Technology and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye'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 |
| Smart Eye vs. MTI Investment SE | Smart Eye vs. Havsfrun Investment AB | Smart Eye vs. Nordic Asia Investment | Smart Eye vs. Upsales Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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