Correlation Between Autoliv and Qleanair Holding
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By analyzing existing cross correlation between Autoliv and Qleanair Holding AB, you can compare the effects of market volatilities on Autoliv and Qleanair Holding 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 Autoliv with a short position of Qleanair Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and Qleanair Holding.
Diversification Opportunities for Autoliv and Qleanair Holding
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Autoliv and Qleanair is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and Qleanair Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qleanair Holding and Autoliv 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 Autoliv are associated (or correlated) with Qleanair Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qleanair Holding has no effect on the direction of Autoliv i.e., Autoliv and Qleanair Holding go up and down completely randomly.
Pair Corralation between Autoliv and Qleanair Holding
Assuming the 90 days trading horizon Autoliv is expected to generate 1.36 times less return on investment than Qleanair Holding. But when comparing it to its historical volatility, Autoliv is 1.92 times less risky than Qleanair Holding. It trades about 0.31 of its potential returns per unit of risk. Qleanair Holding AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,400 in Qleanair Holding AB on April 21, 2025 and sell it today you would earn a total of 610.00 from holding Qleanair Holding AB or generate 43.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Autoliv vs. Qleanair Holding AB
Performance |
Timeline |
Autoliv |
Qleanair Holding |
Autoliv and Qleanair Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Autoliv and Qleanair Holding
The main advantage of trading using opposite Autoliv and Qleanair Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoliv position performs unexpectedly, Qleanair Holding 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 Qleanair Holding will offset losses from the drop in Qleanair Holding's long position.The idea behind Autoliv and Qleanair Holding AB 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.Qleanair Holding vs. CECO Environmental Corp | Qleanair Holding vs. Hexatronic Group AB | Qleanair Holding vs. Stillfront Group AB | Qleanair Holding vs. Storytel 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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