Correlation Between Desenio Group and RVRC Holding

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

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

Diversification Opportunities for Desenio Group and RVRC Holding

0.6

Correlation Coefficient

Desenio Group  RVRC Holding

Poor diversification

The 3 months correlation between Desenio and RVRC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Desenio Group AB and RVRC Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RVRC Holding AB and Desenio 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 Desenio Group AB are associated (or correlated) with RVRC Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RVRC Holding AB has no effect on the direction of Desenio Group i.e., Desenio Group and RVRC Holding go up and down completely randomly.

Pair Corralation between Desenio Group and RVRC Holding

Assuming the 90 days trading horizon Desenio Group AB is expected to under-perform the RVRC Holding. In addition to that, Desenio Group is 2.79 times more volatile than RVRC Holding AB. It trades about -0.05 of its total potential returns per unit of risk. RVRC Holding AB is currently generating about -0.02 per unit of volatility. If you would invest  4,898  in RVRC Holding AB on April 24, 2025 and sell it today you would lose (238.00) from holding RVRC Holding AB or give up 4.86% of portfolio value over 90 days.

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

Desenio Group AB  vs.  RVRC Holding AB

Desenio Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Desenio Group AB 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.

RVRC Holding AB

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Desenio Group and RVRC Holding

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

The idea behind Desenio Group AB and RVRC Holding 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.