Correlation Between Attendo AB and Scibase AB

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

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

Diversification Opportunities for Attendo AB and Scibase AB

-0.57

Correlation Coefficient

Attendo AB  Scibase AB

Excellent diversification

The 3 months correlation between Attendo and Scibase is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Attendo AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase AB and Attendo 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 Attendo AB are associated (or correlated) with Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of Attendo AB i.e., Attendo AB and Scibase AB go up and down completely randomly.

Pair Corralation between Attendo AB and Scibase AB

Assuming the 90 days trading horizon Attendo AB is expected to generate 0.28 times more return on investment than Scibase AB. However, Attendo AB is 3.6 times less risky than Scibase AB. It trades about 0.11 of its potential returns per unit of risk. Scibase AB is currently generating about -0.05 per unit of risk. If you would invest  4,845  in Attendo AB on October 20, 2024 and sell it today you would earn a total of  435.00  from holding Attendo AB or generate 8.98% return on investment over 90 days.

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

Attendo AB  vs.  Scibase AB

Attendo AB

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Attendo AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Attendo AB may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Scibase AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scibase AB 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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Attendo AB and Scibase AB

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

The idea behind Attendo AB and Scibase AB 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.