Correlation Between Saxlund Group and Minesto AB

Can any of the company-specific risk be diversified away by investing in both Saxlund Group and Minesto 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 Saxlund Group and Minesto AB 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 Minesto AB, you can compare the effects of market volatilities on Saxlund Group and Minesto 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 Saxlund Group with a short position of Minesto AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saxlund Group and Minesto AB.

Diversification Opportunities for Saxlund Group and Minesto AB

-0.27

Correlation Coefficient

Saxlund Group  Minesto AB

Very good diversification

The 3 months correlation between Saxlund and Minesto is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Saxlund Group AB and Minesto AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minesto AB 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 Minesto AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minesto AB has no effect on the direction of Saxlund Group i.e., Saxlund Group and Minesto AB go up and down completely randomly.

Pair Corralation between Saxlund Group and Minesto AB

Assuming the 90 days trading horizon Saxlund Group AB is expected to generate 1.51 times more return on investment than Minesto AB. However, Saxlund Group is 1.51 times more volatile than Minesto AB. It trades about 0.02 of its potential returns per unit of risk. Minesto AB is currently generating about -0.13 per unit of risk. If you would invest  880.00  in Saxlund Group AB on October 5, 2024 and sell it today you would lose (40.00) from holding Saxlund Group AB or give up 4.55% of portfolio value over 90 days.

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

Saxlund Group AB  vs.  Minesto AB

Saxlund Group AB

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Saxlund Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Saxlund Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Minesto AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minesto AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic 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 Saxlund Group and Minesto AB

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

The idea behind Saxlund Group AB and Minesto 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.