Correlation Between Autoliv and Raketech Group

Can any of the company-specific risk be diversified away by investing in both Autoliv and Raketech Group 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 Autoliv and Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Autoliv and Raketech Group Holding, you can compare the effects of market volatilities on Autoliv and Raketech Group 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 Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and Raketech Group.

Diversification Opportunities for Autoliv and Raketech Group

-0.64

Correlation Coefficient

Autoliv  Raketech Group

Excellent diversification

The 3 months correlation between Autoliv and Raketech is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group 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 Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Autoliv i.e., Autoliv and Raketech Group go up and down completely randomly.

Pair Corralation between Autoliv and Raketech Group

Assuming the 90 days trading horizon Autoliv is expected to generate 0.57 times more return on investment than Raketech Group. However, Autoliv is 1.75 times less risky than Raketech Group. It trades about 0.31 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.11 per unit of risk. If you would invest  82,380  in Autoliv on April 22, 2025 and sell it today you would earn a total of  26,520  from holding Autoliv or generate 32.19% return on investment over 90 days.

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

Autoliv  vs.  Raketech Group Holding

Autoliv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Autoliv are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Autoliv exhibited solid returns over the last few months and may actually be approaching a breakup point.

Raketech Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raketech Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Autoliv and Raketech Group

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

The idea behind Autoliv and Raketech Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.