Correlation Between Karnov Group and Desenio Group

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

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

Diversification Opportunities for Karnov Group and Desenio Group

0.0

Correlation Coefficient

Karnov Group  Desenio Group

Pay attention - limited upside

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

Pair Corralation between Karnov Group and Desenio Group

If you would invest (100.00) in Karnov Group AB on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Karnov Group 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

Karnov Group AB  vs.  Desenio Group AB

Karnov Group AB

Risk-Adjusted Performance

Insignificant

Over the last 90 days Karnov Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Karnov Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Desenio Group AB

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Karnov Group and Desenio Group

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

The idea behind Karnov Group AB and Desenio Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.