Correlation Between XANO Industri and Troax Group
Can any of the company-specific risk be diversified away by investing in both XANO Industri and Troax Group 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 XANO Industri and Troax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XANO Industri AB and Troax Group AB, you can compare the effects of market volatilities on XANO Industri and Troax Group 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 XANO Industri with a short position of Troax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XANO Industri and Troax Group.
Diversification Opportunities for XANO Industri and Troax Group
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XANO and Troax is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding XANO Industri AB and Troax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troax Group AB and XANO Industri 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 XANO Industri AB are associated (or correlated) with Troax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troax Group AB has no effect on the direction of XANO Industri i.e., XANO Industri and Troax Group go up and down completely randomly.
Pair Corralation between XANO Industri and Troax Group
Assuming the 90 days trading horizon XANO Industri AB is expected to under-perform the Troax Group. In addition to that, XANO Industri is 1.48 times more volatile than Troax Group AB. It trades about -0.17 of its total potential returns per unit of risk. Troax Group AB is currently generating about -0.03 per unit of volatility. If you would invest 21,750 in Troax Group AB on September 3, 2024 and sell it today you would lose (900.00) from holding Troax Group AB or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XANO Industri AB vs. Troax Group AB
Performance |
| Timeline |
| XANO Industri AB |
| Troax Group AB |
XANO Industri and Troax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XANO Industri and Troax Group
The main advantage of trading using opposite XANO Industri and Troax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XANO Industri position performs unexpectedly, Troax Group 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 Troax Group will offset losses from the drop in Troax Group's long position.| XANO Industri vs. Troax Group AB | XANO Industri vs. Lagercrantz Group AB | XANO Industri vs. AQ Group AB | XANO Industri vs. OEM International AB |
| Troax Group vs. Bufab Holding AB | Troax Group vs. Thule Group AB | Troax Group vs. Beijer Ref AB | Troax Group vs. Lifco 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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |