Correlation Between Saxlund Group and Kollect On
Can any of the company-specific risk be diversified away by investing in both Saxlund Group and Kollect On 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 Saxlund Group and Kollect On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saxlund Group AB and Kollect on Demand, you can compare the effects of market volatilities on Saxlund Group and Kollect On 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 Saxlund Group with a short position of Kollect On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saxlund Group and Kollect On.
Diversification Opportunities for Saxlund Group and Kollect On
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saxlund and Kollect is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Saxlund Group AB and Kollect on Demand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kollect on Demand and Saxlund 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 Saxlund Group AB are associated (or correlated) with Kollect On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kollect on Demand has no effect on the direction of Saxlund Group i.e., Saxlund Group and Kollect On go up and down completely randomly.
Pair Corralation between Saxlund Group and Kollect On
Assuming the 90 days trading horizon Saxlund Group AB is expected to under-perform the Kollect On. In addition to that, Saxlund Group is 1.36 times more volatile than Kollect on Demand. It trades about -0.13 of its total potential returns per unit of risk. Kollect on Demand is currently generating about 0.17 per unit of volatility. If you would invest 74.00 in Kollect on Demand on September 24, 2024 and sell it today you would earn a total of 192.00 from holding Kollect on Demand or generate 259.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Saxlund Group AB vs. Kollect on Demand
Performance |
Timeline |
Saxlund Group AB |
Kollect on Demand |
Saxlund Group and Kollect On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saxlund Group and Kollect On
The main advantage of trading using opposite Saxlund Group and Kollect On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saxlund Group position performs unexpectedly, Kollect On 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 Kollect On will offset losses from the drop in Kollect On's long position.Saxlund Group vs. Divio Technologies AB | Saxlund Group vs. Xbrane Biopharma AB | Saxlund Group vs. Flexion Mobile PLC | Saxlund Group vs. Midsummer AB |
Kollect On vs. Divio Technologies AB | Kollect On vs. Xbrane Biopharma AB | Kollect On vs. Flexion Mobile PLC | Kollect On vs. Midsummer AB |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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