Correlation Between Zignsec AB and Cyxone AB
Can any of the company-specific risk be diversified away by investing in both Zignsec AB and Cyxone AB 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 Zignsec AB and Cyxone AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zignsec AB and Cyxone AB, you can compare the effects of market volatilities on Zignsec AB and Cyxone AB 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 Zignsec AB with a short position of Cyxone AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zignsec AB and Cyxone AB.
Diversification Opportunities for Zignsec AB and Cyxone AB
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zignsec and Cyxone is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zignsec AB and Cyxone AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxone AB and Zignsec 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 Zignsec AB are associated (or correlated) with Cyxone AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxone AB has no effect on the direction of Zignsec AB i.e., Zignsec AB and Cyxone AB go up and down completely randomly.
Pair Corralation between Zignsec AB and Cyxone AB
Assuming the 90 days trading horizon Zignsec AB is expected to generate 4.41 times less return on investment than Cyxone AB. But when comparing it to its historical volatility, Zignsec AB is 12.4 times less risky than Cyxone AB. It trades about 0.18 of its potential returns per unit of risk. Cyxone AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Cyxone AB on September 3, 2024 and sell it today you would lose (0.60) from holding Cyxone AB or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zignsec AB vs. Cyxone AB
Performance |
| Timeline |
| Zignsec AB |
| Cyxone AB |
Zignsec AB and Cyxone AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zignsec AB and Cyxone AB
The main advantage of trading using opposite Zignsec AB and Cyxone AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zignsec AB position performs unexpectedly, Cyxone AB 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 Cyxone AB will offset losses from the drop in Cyxone AB's long position.| Zignsec AB vs. Smart Eye AB | Zignsec AB vs. Embracer Group AB | Zignsec AB vs. Zwipe AS | Zignsec AB vs. Sinch AB |
| Cyxone AB vs. Cantargia AB | Cyxone AB vs. Xbrane Biopharma AB | Cyxone AB vs. Klaria Pharma Holding | Cyxone AB vs. BioInvent International 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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