Correlation Between Xplora Technologies and Tekna Holding
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies and Tekna Holding 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 Xplora Technologies and Tekna Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xplora Technologies As and Tekna Holding AS, you can compare the effects of market volatilities on Xplora Technologies and Tekna Holding 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 Xplora Technologies with a short position of Tekna Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Tekna Holding.
Diversification Opportunities for Xplora Technologies and Tekna Holding
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xplora and Tekna is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As and Tekna Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekna Holding AS and Xplora Technologies 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 Xplora Technologies As are associated (or correlated) with Tekna Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekna Holding AS has no effect on the direction of Xplora Technologies i.e., Xplora Technologies and Tekna Holding go up and down completely randomly.
Pair Corralation between Xplora Technologies and Tekna Holding
Assuming the 90 days trading horizon Xplora Technologies As is expected to generate 0.58 times more return on investment than Tekna Holding. However, Xplora Technologies As is 1.73 times less risky than Tekna Holding. It trades about 0.26 of its potential returns per unit of risk. Tekna Holding AS is currently generating about -0.16 per unit of risk. If you would invest 2,190 in Xplora Technologies As on August 29, 2024 and sell it today you would earn a total of 770.00 from holding Xplora Technologies As or generate 35.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xplora Technologies As vs. Tekna Holding AS
Performance |
| Timeline |
| Xplora Technologies |
| Tekna Holding AS |
Xplora Technologies and Tekna Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and Tekna Holding
The main advantage of trading using opposite Xplora Technologies and Tekna Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies position performs unexpectedly, Tekna Holding 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 Tekna Holding will offset losses from the drop in Tekna Holding's long position.| Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech As |
| Tekna Holding vs. Melhus Sparebank | Tekna Holding vs. Xplora Technologies As | Tekna Holding vs. Sogn Sparebank | Tekna Holding vs. Kraft Bank Asa |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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