Correlation Between Xplora Technologies and Melhus Sparebank
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies and Melhus Sparebank 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 Xplora Technologies and Melhus Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xplora Technologies As and Melhus Sparebank, you can compare the effects of market volatilities on Xplora Technologies and Melhus Sparebank 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 Xplora Technologies with a short position of Melhus Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Melhus Sparebank.
Diversification Opportunities for Xplora Technologies and Melhus Sparebank
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xplora and Melhus is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As and Melhus Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melhus Sparebank and Xplora 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 Xplora Technologies As are associated (or correlated) with Melhus Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melhus Sparebank has no effect on the direction of Xplora Technologies i.e., Xplora Technologies and Melhus Sparebank go up and down completely randomly.
Pair Corralation between Xplora Technologies and Melhus Sparebank
Assuming the 90 days trading horizon Xplora Technologies is expected to generate 39.91 times less return on investment than Melhus Sparebank. In addition to that, Xplora Technologies is 2.41 times more volatile than Melhus Sparebank. It trades about 0.0 of its total potential returns per unit of risk. Melhus Sparebank is currently generating about 0.17 per unit of volatility. If you would invest 15,810 in Melhus Sparebank on December 2, 2024 and sell it today you would earn a total of 1,688 from holding Melhus Sparebank or generate 10.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xplora Technologies As vs. Melhus Sparebank
Performance |
Timeline |
Xplora Technologies |
Melhus Sparebank |
Xplora Technologies and Melhus Sparebank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xplora Technologies and Melhus Sparebank
The main advantage of trading using opposite Xplora Technologies and Melhus Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies position performs unexpectedly, Melhus Sparebank 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 Melhus Sparebank will offset losses from the drop in Melhus Sparebank's long position.Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech As |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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