Correlation Between Momentum Group and Cell Impact

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

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

Diversification Opportunities for Momentum Group and Cell Impact

0.0

Correlation Coefficient

Momentum Group  Cell Impact

Pay attention - limited upside

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

Pair Corralation between Momentum Group and Cell Impact

If you would invest  0.00  in Momentum Group AB on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Momentum Group AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Momentum Group AB  vs.  Cell Impact AB

Momentum Group AB

Risk-Adjusted Performance

0 of 100

Insignificant

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

Cell Impact AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cell Impact AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Momentum Group and Cell Impact

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

The idea behind Momentum Group AB and Cell Impact 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.