Correlation Between STRAITS TRADG and Heliospectra

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Can any of the company-specific risk be diversified away by investing in both STRAITS TRADG and Heliospectra 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 STRAITS TRADG and Heliospectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRAITS TRADG SD and Heliospectra AB Namn, you can compare the effects of market volatilities on STRAITS TRADG and Heliospectra 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 STRAITS TRADG with a short position of Heliospectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRAITS TRADG and Heliospectra.

Diversification Opportunities for STRAITS TRADG and Heliospectra

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between STRAITS and Heliospectra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRAITS TRADG SD 1 and Heliospectra AB Namn Akt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliospectra AB Namn and STRAITS TRADG 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 STRAITS TRADG SD are associated (or correlated) with Heliospectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliospectra AB Namn has no effect on the direction of STRAITS TRADG i.e., STRAITS TRADG and Heliospectra go up and down completely randomly.

Pair Corralation between STRAITS TRADG and Heliospectra

If you would invest  142.00  in STRAITS TRADG SD on August 28, 2022 and sell it today you would earn a total of  19.00  from holding STRAITS TRADG SD or generate 13.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

STRAITS TRADG SD 1  vs.  Heliospectra AB Namn Akt

 Performance (%) 
       Timeline  
STRAITS TRADG SD 
STRAITS Performance
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Over the last 90 days STRAITS TRADG SD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in December 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

STRAITS Price Channel

Heliospectra AB Namn 
Heliospectra Performance
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Over the last 90 days Heliospectra AB Namn has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Heliospectra is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

STRAITS TRADG and Heliospectra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with STRAITS TRADG and Heliospectra

The main advantage of trading using opposite STRAITS TRADG and Heliospectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRAITS TRADG position performs unexpectedly, Heliospectra 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 Heliospectra will offset losses from the drop in Heliospectra's long position.
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The idea behind STRAITS TRADG SD and Heliospectra AB Namn 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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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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