Correlation Between Maven Wireless and Sileon AB

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

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

Diversification Opportunities for Maven Wireless and Sileon AB

0.57

Correlation Coefficient

Maven Wireless  Sileon AB

Very weak diversification

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

Pair Corralation between Maven Wireless and Sileon AB

Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 0.45 times more return on investment than Sileon AB. However, Maven Wireless Sweden is 2.23 times less risky than Sileon AB. It trades about 0.0 of its potential returns per unit of risk. Sileon AB is currently generating about -0.09 per unit of risk. If you would invest  1,333  in Maven Wireless Sweden on October 25, 2024 and sell it today you would lose (218.00) from holding Maven Wireless Sweden or give up 16.35% of portfolio value over 90 days.

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

Maven Wireless Sweden  vs.  Sileon AB

Maven Wireless Sweden

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sileon AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sileon AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Maven Wireless and Sileon AB

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

The idea behind Maven Wireless Sweden and Sileon 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.