Correlation Between Heliospectra Publ and Clean Motion

Can any of the company-specific risk be diversified away by investing in both Heliospectra Publ and Clean Motion 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 Heliospectra Publ and Clean Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Heliospectra publ AB and Clean Motion AB, you can compare the effects of market volatilities on Heliospectra Publ and Clean Motion 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 Heliospectra Publ with a short position of Clean Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heliospectra Publ and Clean Motion.

Diversification Opportunities for Heliospectra Publ and Clean Motion

-0.34

Correlation Coefficient

Heliospectra Publ  Clean Motion

Very good diversification

The 3 months correlation between Heliospectra and Clean is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Heliospectra publ AB and Clean Motion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Motion AB and Heliospectra Publ 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 Heliospectra publ AB are associated (or correlated) with Clean Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Motion AB has no effect on the direction of Heliospectra Publ i.e., Heliospectra Publ and Clean Motion go up and down completely randomly.

Pair Corralation between Heliospectra Publ and Clean Motion

Assuming the 90 days trading horizon Heliospectra publ AB is expected to under-perform the Clean Motion. But the stock apears to be less risky and, when comparing its historical volatility, Heliospectra publ AB is 1.14 times less risky than Clean Motion. The stock trades about -0.02 of its potential returns per unit of risk. The Clean Motion AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Clean Motion AB on April 23, 2025 and sell it today you would earn a total of  20.00  from holding Clean Motion AB or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Heliospectra publ AB  vs.  Clean Motion AB

Heliospectra publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heliospectra publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Clean Motion AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Motion AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Clean Motion unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Heliospectra Publ and Clean Motion

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

The idea behind Heliospectra publ AB and Clean Motion 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.