Correlation Between Asker Healthcare and SolTech Energy

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

Diversification Opportunities for Asker Healthcare and SolTech Energy

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Asker and SolTech is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Asker Healthcare and SolTech Energy Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolTech Energy Sweden and Asker Healthcare 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 Asker Healthcare are associated (or correlated) with SolTech Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolTech Energy Sweden has no effect on the direction of Asker Healthcare i.e., Asker Healthcare and SolTech Energy go up and down completely randomly.

Pair Corralation between Asker Healthcare and SolTech Energy

Assuming the 90 days trading horizon Asker Healthcare is expected to generate 0.68 times more return on investment than SolTech Energy. However, Asker Healthcare is 1.46 times less risky than SolTech Energy. It trades about 0.21 of its potential returns per unit of risk. SolTech Energy Sweden is currently generating about -0.1 per unit of risk. If you would invest  9,414  in Asker Healthcare on April 22, 2025 and sell it today you would earn a total of  3,334  from holding Asker Healthcare or generate 35.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Asker Healthcare  vs.  SolTech Energy Sweden

 Performance 
       Timeline  
Asker Healthcare 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Asker Healthcare are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Asker Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.
SolTech Energy Sweden 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SolTech Energy Sweden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

Asker Healthcare and SolTech Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Asker Healthcare and SolTech Energy

The main advantage of trading using opposite Asker Healthcare and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asker Healthcare position performs unexpectedly, SolTech Energy 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 SolTech Energy will offset losses from the drop in SolTech Energy's long position.
The idea behind Asker Healthcare and SolTech Energy Sweden 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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