Correlation Between Xintela AB and ProfilGruppen
Can any of the company-specific risk be diversified away by investing in both Xintela AB and ProfilGruppen 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 Xintela AB and ProfilGruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xintela AB and ProfilGruppen AB, you can compare the effects of market volatilities on Xintela AB and ProfilGruppen 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 Xintela AB with a short position of ProfilGruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xintela AB and ProfilGruppen.
Diversification Opportunities for Xintela AB and ProfilGruppen
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xintela and ProfilGruppen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xintela AB and ProfilGruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProfilGruppen AB and Xintela AB 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 Xintela AB are associated (or correlated) with ProfilGruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProfilGruppen AB has no effect on the direction of Xintela AB i.e., Xintela AB and ProfilGruppen go up and down completely randomly.
Pair Corralation between Xintela AB and ProfilGruppen
Assuming the 90 days trading horizon Xintela AB is expected to under-perform the ProfilGruppen. In addition to that, Xintela AB is 3.01 times more volatile than ProfilGruppen AB. It trades about -0.12 of its total potential returns per unit of risk. ProfilGruppen AB is currently generating about -0.07 per unit of volatility. If you would invest 10,450 in ProfilGruppen AB on September 3, 2024 and sell it today you would lose (250.00) from holding ProfilGruppen AB or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xintela AB vs. ProfilGruppen AB
Performance |
| Timeline |
| Xintela AB |
| ProfilGruppen AB |
Xintela AB and ProfilGruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xintela AB and ProfilGruppen
The main advantage of trading using opposite Xintela AB and ProfilGruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xintela AB position performs unexpectedly, ProfilGruppen 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 ProfilGruppen will offset losses from the drop in ProfilGruppen's long position.| Xintela AB vs. Simris Alg AB | Xintela AB vs. Immunovia publ AB | Xintela AB vs. Sedana Medical AB | Xintela AB vs. KABE Group AB |
| ProfilGruppen vs. Svedbergs i Dalstorp | ProfilGruppen vs. Softronic AB | ProfilGruppen vs. Novotek AB | ProfilGruppen vs. Prevas 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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