Correlation Between CAG Group and Micro Systemation

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

By analyzing existing cross correlation between CAG Group AB and Micro Systemation AB, you can compare the effects of market volatilities on CAG Group and Micro Systemation 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 CAG Group with a short position of Micro Systemation. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAG Group and Micro Systemation.

Diversification Opportunities for CAG Group and Micro Systemation

0.0

Correlation Coefficient

CAG Group  Micro Systemation

Pay attention - limited upside

The 3 months correlation between CAG and Micro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAG Group AB and Micro Systemation AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Systemation and CAG Group 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 CAG Group AB are associated (or correlated) with Micro Systemation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Systemation has no effect on the direction of CAG Group i.e., CAG Group and Micro Systemation go up and down completely randomly.

Pair Corralation between CAG Group and Micro Systemation

If you would invest  4,897  in Micro Systemation AB on April 24, 2025 and sell it today you would earn a total of  803.00  from holding Micro Systemation AB or generate 16.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

CAG Group AB  vs.  Micro Systemation AB

CAG Group AB

Risk-Adjusted Performance

Modest

Over the last 90 days CAG Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CAG Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Micro Systemation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Micro Systemation AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Micro Systemation sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CAG Group and Micro Systemation

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

The idea behind CAG Group AB and Micro Systemation 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.