Correlation Between Kinnevik Investment and Datalogic

Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Datalogic 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 Kinnevik Investment and Datalogic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kinnevik Investment AB and Datalogic, you can compare the effects of market volatilities on Kinnevik Investment and Datalogic 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 Kinnevik Investment with a short position of Datalogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Datalogic.

Diversification Opportunities for Kinnevik Investment and Datalogic

0.17

Correlation Coefficient

Kinnevik Investment  Datalogic

Average diversification

The 3 months correlation between Kinnevik and Datalogic is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Datalogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datalogic and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Datalogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datalogic has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Datalogic go up and down completely randomly.

Pair Corralation between Kinnevik Investment and Datalogic

Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Datalogic. But the stock apears to be less risky and, when comparing its historical volatility, Kinnevik Investment AB is 1.24 times less risky than Datalogic. The stock trades about -0.05 of its potential returns per unit of risk. The Datalogic is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  917.00  in Datalogic on October 11, 2024 and sell it today you would lose (423.00) from holding Datalogic or give up 46.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.81%
Values	Daily Returns

Kinnevik Investment AB  vs.  Datalogic

Kinnevik Investment

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kinnevik Investment AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Kinnevik Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Datalogic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Datalogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Kinnevik Investment and Datalogic

The main advantage of trading using opposite Kinnevik Investment and Datalogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Datalogic 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 Datalogic will offset losses from the drop in Datalogic's long position.

The idea behind Kinnevik Investment AB and Datalogic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.