Correlation Between Unlimited Travel and Q Linea
Can any of the company-specific risk be diversified away by investing in both Unlimited Travel and Q Linea 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 Unlimited Travel and Q Linea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unlimited Travel Group and Q linea AB, you can compare the effects of market volatilities on Unlimited Travel and Q Linea 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 Unlimited Travel with a short position of Q Linea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unlimited Travel and Q Linea.
Diversification Opportunities for Unlimited Travel and Q Linea
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unlimited and QLINEA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Unlimited Travel Group and Q linea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q linea AB and Unlimited Travel 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 Unlimited Travel Group are associated (or correlated) with Q Linea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q linea AB has no effect on the direction of Unlimited Travel i.e., Unlimited Travel and Q Linea go up and down completely randomly.
Pair Corralation between Unlimited Travel and Q Linea
Assuming the 90 days trading horizon Unlimited Travel Group is expected to generate 0.37 times more return on investment than Q Linea. However, Unlimited Travel Group is 2.71 times less risky than Q Linea. It trades about 0.07 of its potential returns per unit of risk. Q linea AB is currently generating about -0.37 per unit of risk. If you would invest 1,260 in Unlimited Travel Group on September 23, 2024 and sell it today you would earn a total of 70.00 from holding Unlimited Travel Group or generate 5.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Unlimited Travel Group vs. Q linea AB
Performance |
Timeline |
Unlimited Travel |
Q linea AB |
Unlimited Travel and Q Linea Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unlimited Travel and Q Linea
The main advantage of trading using opposite Unlimited Travel and Q Linea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unlimited Travel position performs unexpectedly, Q Linea 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 Q Linea will offset losses from the drop in Q Linea's long position.Unlimited Travel vs. Byggmax Group AB | Unlimited Travel vs. Svedbergs i Dalstorp | Unlimited Travel vs. Inwido AB | Unlimited Travel vs. New Wave Group |
Q Linea vs. Immunovia publ AB | Q Linea vs. Camurus AB | Q Linea vs. Hansa Biopharma AB | Q Linea vs. Bonesupport Holding AB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Valuation Check real value of public entities based on technical and fundamental data |