Correlation Between Insplorion and Sozap Publ

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

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

Diversification Opportunities for Insplorion and Sozap Publ

-0.41

Correlation Coefficient

Insplorion  Sozap Publ

Very good diversification

The 3 months correlation between Insplorion and Sozap is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Insplorion AB and Sozap Publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sozap Publ AB and Insplorion 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 Insplorion AB are associated (or correlated) with Sozap Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sozap Publ AB has no effect on the direction of Insplorion i.e., Insplorion and Sozap Publ go up and down completely randomly.

Pair Corralation between Insplorion and Sozap Publ

Assuming the 90 days trading horizon Insplorion AB is expected to under-perform the Sozap Publ. But the stock apears to be less risky and, when comparing its historical volatility, Insplorion AB is 2.87 times less risky than Sozap Publ. The stock trades about -0.06 of its potential returns per unit of risk. The Sozap Publ AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  44.00  in Sozap Publ AB on April 21, 2025 and sell it today you would earn a total of  4.00  from holding Sozap Publ AB or generate 9.09% return on investment over 90 days.

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

Insplorion AB  vs.  Sozap Publ AB

Insplorion AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Insplorion 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.

Sozap Publ AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sozap Publ AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sozap Publ unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Insplorion and Sozap Publ

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

The idea behind Insplorion AB and Sozap Publ 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.