Correlation Between Upsales Technology and Platzer Fastigheter

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

Diversification Opportunities for Upsales Technology and Platzer Fastigheter

0.71

Correlation Coefficient

Upsales Technology  Platzer Fastigheter

Poor diversification

The 3 months correlation between Upsales and Platzer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and Platzer Fastigheter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platzer Fastigheter 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 Platzer Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platzer Fastigheter has no effect on the direction of Upsales Technology i.e., Upsales Technology and Platzer Fastigheter go up and down completely randomly.

Pair Corralation between Upsales Technology and Platzer Fastigheter

Assuming the 90 days trading horizon Upsales Technology AB is expected to under-perform the Platzer Fastigheter. In addition to that, Upsales Technology is 1.39 times more volatile than Platzer Fastigheter Holding. It trades about -0.02 of its total potential returns per unit of risk. Platzer Fastigheter Holding is currently generating about 0.06 per unit of volatility. If you would invest  6,598  in Platzer Fastigheter Holding on September 14, 2024 and sell it today you would earn a total of  2,112  from holding Platzer Fastigheter Holding or generate 32.01% return on investment over 90 days.

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

Upsales Technology AB  vs.  Platzer Fastigheter Holding

Upsales Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Upsales Technology AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Platzer Fastigheter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Platzer Fastigheter Holding 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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Upsales Technology and Platzer Fastigheter

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

The idea behind Upsales Technology AB and Platzer Fastigheter Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.