Correlation Between SaveLend Group and Leading Edge
Can any of the company-specific risk be diversified away by investing in both SaveLend Group and Leading Edge 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 Leading Edge 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 Leading Edge Materials, you can compare the effects of market volatilities on SaveLend Group and Leading Edge 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 Leading Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and Leading Edge.
Diversification Opportunities for SaveLend Group and Leading Edge
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SaveLend and Leading is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Leading Edge Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leading Edge Materials 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 Leading Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leading Edge Materials has no effect on the direction of SaveLend Group i.e., SaveLend Group and Leading Edge go up and down completely randomly.
Pair Corralation between SaveLend Group and Leading Edge
Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the Leading Edge. But the stock apears to be less risky and, when comparing its historical volatility, SaveLend Group AB is 1.32 times less risky than Leading Edge. The stock trades about -0.09 of its potential returns per unit of risk. The Leading Edge Materials is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Leading Edge Materials on September 12, 2024 and sell it today you would lose (50.00) from holding Leading Edge Materials or give up 39.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. Leading Edge Materials
Performance |
| Timeline |
| SaveLend Group AB |
| Leading Edge Materials |
SaveLend Group and Leading Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and Leading Edge
The main advantage of trading using opposite SaveLend Group and Leading Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group position performs unexpectedly, Leading Edge 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 Leading Edge will offset losses from the drop in Leading Edge'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 |
| Leading Edge vs. Boliden AB | Leading Edge vs. Filo Mining Corp | Leading Edge vs. KABE Group AB | Leading Edge vs. IAR Systems Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |