Correlation Between AutoStore Holdings and Tekna Holding

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

By analyzing existing cross correlation between AutoStore Holdings and Tekna Holding AS, you can compare the effects of market volatilities on AutoStore Holdings and Tekna 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 AutoStore Holdings with a short position of Tekna Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Tekna Holding.

Diversification Opportunities for AutoStore Holdings and Tekna Holding

-0.33

Correlation Coefficient

AutoStore Holdings  Tekna Holding

Very good diversification

The 3 months correlation between AutoStore and Tekna is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Tekna Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekna Holding AS and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Tekna Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekna Holding AS has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Tekna Holding go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Tekna Holding

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 0.95 times more return on investment than Tekna Holding. However, AutoStore Holdings is 1.06 times less risky than Tekna Holding. It trades about 0.14 of its potential returns per unit of risk. Tekna Holding AS is currently generating about -0.02 per unit of risk. If you would invest  539.00  in AutoStore Holdings on April 24, 2025 and sell it today you would earn a total of  161.00  from holding AutoStore Holdings or generate 29.87% return on investment over 90 days.

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

AutoStore Holdings  vs.  Tekna Holding AS

AutoStore Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, AutoStore Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Tekna Holding AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tekna Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Tekna Holding is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with AutoStore Holdings and Tekna Holding

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

The idea behind AutoStore Holdings and Tekna Holding AS 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.