Correlation Between SECITS Holding and Ayima Group

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

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

Diversification Opportunities for SECITS Holding and Ayima Group

0.0

Correlation Coefficient

SECITS Holding  Ayima Group

Pay attention - limited upside

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

Pair Corralation between SECITS Holding and Ayima Group

If you would invest  332.00  in Ayima Group AB on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Ayima Group AB or generate 0.0% return on investment over 90 days.

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

SECITS Holding AB  vs.  Ayima Group AB

SECITS Holding AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Ayima Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SECITS Holding and Ayima Group

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

The idea behind SECITS Holding AB and Ayima Group 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.