Correlation Between Ellwee AB and Doxa AB

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

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

Diversification Opportunities for Ellwee AB and Doxa AB

0.0

Correlation Coefficient

Ellwee AB  Doxa AB

Pay attention - limited upside

The 3 months correlation between Ellwee and Doxa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ellwee AB and Doxa AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doxa AB and Ellwee 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 Ellwee AB are associated (or correlated) with Doxa AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doxa AB has no effect on the direction of Ellwee AB i.e., Ellwee AB and Doxa AB go up and down completely randomly.

Pair Corralation between Ellwee AB and Doxa AB

If you would invest (100.00) in Ellwee AB on October 25, 2024 and sell it today you would earn a total of  100.00  from holding Ellwee AB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ellwee AB  vs.  Doxa AB

Ellwee AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ellwee AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Ellwee AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Doxa AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doxa 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 Ellwee AB and Doxa AB

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

The idea behind Ellwee AB and Doxa 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.