Correlation Between Vitrolife and Xintela AB
Can any of the company-specific risk be diversified away by investing in both Vitrolife and Xintela 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 Vitrolife and Xintela AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vitrolife AB and Xintela AB, you can compare the effects of market volatilities on Vitrolife and Xintela 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 Vitrolife with a short position of Xintela AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitrolife and Xintela AB.
Diversification Opportunities for Vitrolife and Xintela AB
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vitrolife and Xintela is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vitrolife AB and Xintela AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintela AB and Vitrolife 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 Vitrolife AB are associated (or correlated) with Xintela AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintela AB has no effect on the direction of Vitrolife i.e., Vitrolife and Xintela AB go up and down completely randomly.
Pair Corralation between Vitrolife and Xintela AB
Assuming the 90 days trading horizon Vitrolife AB is expected to generate 0.55 times more return on investment than Xintela AB. However, Vitrolife AB is 1.82 times less risky than Xintela AB. It trades about -0.07 of its potential returns per unit of risk. Xintela AB is currently generating about -0.18 per unit of risk. If you would invest 25,160 in Vitrolife AB on September 3, 2024 and sell it today you would lose (2,680) from holding Vitrolife AB or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vitrolife AB vs. Xintela AB
Performance |
| Timeline |
| Vitrolife AB |
| Xintela AB |
Vitrolife and Xintela AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vitrolife and Xintela AB
The main advantage of trading using opposite Vitrolife and Xintela AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitrolife position performs unexpectedly, Xintela 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 Xintela AB will offset losses from the drop in Xintela AB's long position.| Vitrolife vs. FormPipe Software AB | Vitrolife vs. Soder Sportfiske AB | Vitrolife vs. 24SevenOffice Scandinavia AB | Vitrolife vs. AVTECH Sweden AB |
| Xintela AB vs. Simris Alg AB | Xintela AB vs. Immunovia publ AB | Xintela AB vs. Sedana Medical AB | Xintela AB vs. KABE 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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