Correlation Between Svenska Aerogel and Veg Of

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

By analyzing existing cross correlation between Svenska Aerogel Holding and Veg of Lund, you can compare the effects of market volatilities on Svenska Aerogel and Veg Of 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 Svenska Aerogel with a short position of Veg Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and Veg Of.

Diversification Opportunities for Svenska Aerogel and Veg Of

-0.74

Correlation Coefficient

Svenska Aerogel  Veg Of

Pay attention - limited upside

The 3 months correlation between Svenska and Veg is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and Veg of Lund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veg of Lund and Svenska Aerogel 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 Svenska Aerogel Holding are associated (or correlated) with Veg Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veg of Lund has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and Veg Of go up and down completely randomly.

Pair Corralation between Svenska Aerogel and Veg Of

Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the Veg Of. In addition to that, Svenska Aerogel is 1.11 times more volatile than Veg of Lund. It trades about -0.12 of its total potential returns per unit of risk. Veg of Lund is currently generating about 0.26 per unit of volatility. If you would invest  24.00  in Veg of Lund on December 30, 2024 and sell it today you would earn a total of  47.00  from holding Veg of Lund or generate 195.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Svenska Aerogel Holding  vs.  Veg of Lund

Svenska Aerogel Holding

Risk-Adjusted Performance

Very Weak

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

Veg of Lund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Veg of Lund are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Veg Of unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Svenska Aerogel and Veg Of

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

The idea behind Svenska Aerogel Holding and Veg of Lund 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.