Correlation Between SaveLend Group and Vitec Software
Can any of the company-specific risk be diversified away by investing in both SaveLend Group and Vitec Software 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 Vitec Software 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 Vitec Software Group, you can compare the effects of market volatilities on SaveLend Group and Vitec Software 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 Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and Vitec Software.
Diversification Opportunities for SaveLend Group and Vitec Software
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SaveLend and Vitec is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software Group 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 Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of SaveLend Group i.e., SaveLend Group and Vitec Software go up and down completely randomly.
Pair Corralation between SaveLend Group and Vitec Software
Assuming the 90 days trading horizon SaveLend Group AB is expected to generate 1.33 times more return on investment than Vitec Software. However, SaveLend Group is 1.33 times more volatile than Vitec Software Group. It trades about -0.01 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.11 per unit of risk. If you would invest 232.00 in SaveLend Group AB on August 30, 2024 and sell it today you would lose (8.00) from holding SaveLend Group AB or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. Vitec Software Group
Performance |
| Timeline |
| SaveLend Group AB |
| Vitec Software Group |
SaveLend Group and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and Vitec Software
The main advantage of trading using opposite SaveLend Group and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group position performs unexpectedly, Vitec Software 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 Vitec Software will offset losses from the drop in Vitec Software'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 |
| Vitec Software vs. Lifco AB | Vitec Software vs. Lagercrantz Group AB | Vitec Software vs. Addtech AB | Vitec Software vs. Instalco Intressenter 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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