Correlation Between Saule Technologies and Lubelski Wegiel

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

By analyzing existing cross correlation between Saule Technologies SA and Lubelski Wegiel Bogdanka, you can compare the effects of market volatilities on Saule Technologies and Lubelski Wegiel 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 Saule Technologies with a short position of Lubelski Wegiel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Lubelski Wegiel.

Diversification Opportunities for Saule Technologies and Lubelski Wegiel

-0.13

Correlation Coefficient

Saule Technologies  Lubelski Wegiel

Good diversification

The 3 months correlation between Saule and Lubelski is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Lubelski Wegiel Bogdanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lubelski Wegiel Bogdanka and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with Lubelski Wegiel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lubelski Wegiel Bogdanka has no effect on the direction of Saule Technologies i.e., Saule Technologies and Lubelski Wegiel go up and down completely randomly.

Pair Corralation between Saule Technologies and Lubelski Wegiel

Assuming the 90 days trading horizon Saule Technologies SA is expected to generate 2.78 times more return on investment than Lubelski Wegiel. However, Saule Technologies is 2.78 times more volatile than Lubelski Wegiel Bogdanka. It trades about 0.13 of its potential returns per unit of risk. Lubelski Wegiel Bogdanka is currently generating about 0.01 per unit of risk. If you would invest  105.00  in Saule Technologies SA on September 18, 2024 and sell it today you would earn a total of  14.00  from holding Saule Technologies SA or generate 13.33% return on investment over 90 days.

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

Saule Technologies SA  vs.  Lubelski Wegiel Bogdanka

Saule Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saule Technologies SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Lubelski Wegiel Bogdanka

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lubelski Wegiel Bogdanka are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Lubelski Wegiel may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Saule Technologies and Lubelski Wegiel

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

The idea behind Saule Technologies SA and Lubelski Wegiel Bogdanka 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.