Correlation Between SaveLend Group and Cinis Fertilizer
Can any of the company-specific risk be diversified away by investing in both SaveLend Group and Cinis Fertilizer 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 SaveLend Group and Cinis Fertilizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaveLend Group AB and Cinis Fertilizer AB, you can compare the effects of market volatilities on SaveLend Group and Cinis Fertilizer 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 SaveLend Group with a short position of Cinis Fertilizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and Cinis Fertilizer.
Diversification Opportunities for SaveLend Group and Cinis Fertilizer
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SaveLend and Cinis is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Cinis Fertilizer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinis Fertilizer and SaveLend Group 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 SaveLend Group AB are associated (or correlated) with Cinis Fertilizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinis Fertilizer has no effect on the direction of SaveLend Group i.e., SaveLend Group and Cinis Fertilizer go up and down completely randomly.
Pair Corralation between SaveLend Group and Cinis Fertilizer
Assuming the 90 days trading horizon SaveLend Group AB is expected to generate 1.02 times more return on investment than Cinis Fertilizer. However, SaveLend Group is 1.02 times more volatile than Cinis Fertilizer AB. It trades about -0.05 of its potential returns per unit of risk. Cinis Fertilizer AB is currently generating about -0.29 per unit of risk. If you would invest 233.00 in SaveLend Group AB on September 1, 2024 and sell it today you would lose (14.00) from holding SaveLend Group AB or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. Cinis Fertilizer AB
Performance |
| Timeline |
| SaveLend Group AB |
| Cinis Fertilizer |
SaveLend Group and Cinis Fertilizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and Cinis Fertilizer
The main advantage of trading using opposite SaveLend Group and Cinis Fertilizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group position performs unexpectedly, Cinis Fertilizer 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 Cinis Fertilizer will offset losses from the drop in Cinis Fertilizer's long position.| SaveLend Group vs. Smart Eye AB | SaveLend Group vs. Nepa AB | SaveLend Group vs. MAG Interactive AB | SaveLend Group vs. Hexatronic Group AB |
| Cinis Fertilizer vs. Upsales Technology AB | Cinis Fertilizer vs. COOR Service Management | Cinis Fertilizer vs. Arctic Blue Beverages | Cinis Fertilizer vs. Beowulf Mining PLC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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