Correlation Between Saxlund Group and Organoclick

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

Diversification Opportunities for Saxlund Group and Organoclick

-0.22

Correlation Coefficient

Saxlund Group  Organoclick

Very good diversification

The 3 months correlation between Saxlund and Organoclick is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Saxlund Group AB and Organoclick AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Organoclick 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 Organoclick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Organoclick AB has no effect on the direction of Saxlund Group i.e., Saxlund Group and Organoclick go up and down completely randomly.

Pair Corralation between Saxlund Group and Organoclick

Assuming the 90 days trading horizon Saxlund Group AB is expected to under-perform the Organoclick. In addition to that, Saxlund Group is 2.13 times more volatile than Organoclick AB. It trades about -0.09 of its total potential returns per unit of risk. Organoclick AB is currently generating about 0.0 per unit of volatility. If you would invest  324.00  in Organoclick AB on October 5, 2024 and sell it today you would lose (31.00) from holding Organoclick AB or give up 9.57% 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.  Organoclick 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.

Organoclick AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Saxlund Group and Organoclick

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

The idea behind Saxlund Group AB and Organoclick 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.