Correlation Between Fluicell and Qlife Holding
Can any of the company-specific risk be diversified away by investing in both Fluicell and Qlife Holding 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 Fluicell and Qlife Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluicell AB and Qlife Holding AB, you can compare the effects of market volatilities on Fluicell and Qlife Holding 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 Fluicell with a short position of Qlife Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluicell and Qlife Holding.
Diversification Opportunities for Fluicell and Qlife Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fluicell and Qlife is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fluicell AB and Qlife Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qlife Holding AB and Fluicell 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 Fluicell AB are associated (or correlated) with Qlife Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qlife Holding AB has no effect on the direction of Fluicell i.e., Fluicell and Qlife Holding go up and down completely randomly.
Pair Corralation between Fluicell and Qlife Holding
Assuming the 90 days trading horizon Fluicell AB is expected to under-perform the Qlife Holding. But the stock apears to be less risky and, when comparing its historical volatility, Fluicell AB is 1.26 times less risky than Qlife Holding. The stock trades about -0.14 of its potential returns per unit of risk. The Qlife Holding AB is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 285.00 in Qlife Holding AB on September 6, 2024 and sell it today you would lose (75.00) from holding Qlife Holding AB or give up 26.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fluicell AB vs. Qlife Holding AB
Performance |
Timeline |
Fluicell AB |
Qlife Holding AB |
Fluicell and Qlife Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fluicell and Qlife Holding
The main advantage of trading using opposite Fluicell and Qlife Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluicell position performs unexpectedly, Qlife Holding 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 Qlife Holding will offset losses from the drop in Qlife Holding's long position.Fluicell vs. Simris Alg AB | Fluicell vs. Immunovia publ AB | Fluicell vs. Sedana Medical AB | Fluicell vs. KABE Group AB |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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