Correlation Between Asker Healthcare and SolTech Energy
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Asker Healthcare vs. SolTech Energy Sweden
Performance |
Timeline |
Asker Healthcare |
SolTech Energy Sweden |
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.Asker Healthcare vs. Media and Games | Asker Healthcare vs. Diamyd Medical AB | Asker Healthcare vs. Investment AB Oresund | Asker Healthcare vs. GiG Software PLC |
SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Powercell Sweden | SolTech Energy vs. Sinch 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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