Correlation Between Upsales Technology and Nilsson Special

Can any of the company-specific risk be diversified away by investing in both Upsales Technology and Nilsson Special 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 Upsales Technology and Nilsson Special into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Upsales Technology AB and Nilsson Special Vehicles, you can compare the effects of market volatilities on Upsales Technology and Nilsson Special 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 Upsales Technology with a short position of Nilsson Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Nilsson Special.

Diversification Opportunities for Upsales Technology and Nilsson Special

0.24

Correlation Coefficient

Upsales Technology  Nilsson Special

Modest diversification

The 3 months correlation between Upsales and Nilsson is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Nilsson Special Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nilsson Special Vehicles and Upsales Technology 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 Upsales Technology AB are associated (or correlated) with Nilsson Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nilsson Special Vehicles has no effect on the direction of Upsales Technology i.e., Upsales Technology and Nilsson Special go up and down completely randomly.

Pair Corralation between Upsales Technology and Nilsson Special

Assuming the 90 days trading horizon Upsales Technology AB is expected to generate 0.36 times more return on investment than Nilsson Special. However, Upsales Technology AB is 2.78 times less risky than Nilsson Special. It trades about 0.18 of its potential returns per unit of risk. Nilsson Special Vehicles is currently generating about 0.06 per unit of risk. If you would invest  3,160  in Upsales Technology AB on December 1, 2024 and sell it today you would earn a total of  340.00  from holding Upsales Technology AB or generate 10.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Upsales Technology AB  vs.  Nilsson Special Vehicles

Upsales Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Upsales Technology AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Upsales Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Nilsson Special Vehicles

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nilsson Special Vehicles are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Nilsson Special unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Upsales Technology and Nilsson Special

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

The idea behind Upsales Technology AB and Nilsson Special Vehicles 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.