Correlation Between PolyPlank Publ and Systemair

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

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

Diversification Opportunities for PolyPlank Publ and Systemair

-0.72

Correlation Coefficient

PolyPlank Publ  Systemair

Pay attention - limited upside

The 3 months correlation between PolyPlank and Systemair is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PolyPlank publ AB and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and PolyPlank Publ 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 PolyPlank publ AB are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of PolyPlank Publ i.e., PolyPlank Publ and Systemair go up and down completely randomly.

Pair Corralation between PolyPlank Publ and Systemair

Assuming the 90 days trading horizon PolyPlank publ AB is expected to under-perform the Systemair. In addition to that, PolyPlank Publ is 2.68 times more volatile than Systemair AB. It trades about -0.05 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.06 per unit of volatility. If you would invest  7,800  in Systemair AB on September 23, 2024 and sell it today you would earn a total of  1,140  from holding Systemair AB or generate 14.62% return on investment over 90 days.

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

PolyPlank publ AB  vs.  Systemair AB

PolyPlank publ AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PolyPlank publ 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.

Systemair AB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Systemair AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Systemair is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PolyPlank Publ and Systemair

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

The idea behind PolyPlank publ AB and Systemair 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.