Correlation Between Online Brands and SolTech Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Online Brands and SolTech Energy 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 Online Brands and SolTech Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Online Brands Nordic and SolTech Energy Sweden, you can compare the effects of market volatilities on Online Brands and SolTech Energy 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 Online Brands with a short position of SolTech Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and SolTech Energy.

Diversification Opportunities for Online Brands and SolTech Energy

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Online and SolTech is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and SolTech Energy Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolTech Energy Sweden and Online Brands 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 Online Brands Nordic are associated (or correlated) with SolTech Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolTech Energy Sweden has no effect on the direction of Online Brands i.e., Online Brands and SolTech Energy go up and down completely randomly.

Pair Corralation between Online Brands and SolTech Energy

Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 0.6 times more return on investment than SolTech Energy. However, Online Brands Nordic is 1.67 times less risky than SolTech Energy. It trades about -0.02 of its potential returns per unit of risk. SolTech Energy Sweden is currently generating about -0.12 per unit of risk. If you would invest  1,455  in Online Brands Nordic on April 23, 2025 and sell it today you would lose (60.00) from holding Online Brands Nordic or give up 4.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Online Brands Nordic  vs.  SolTech Energy Sweden

 Performance 
       Timeline  
Online Brands Nordic 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Online Brands Nordic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Online Brands is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
SolTech Energy Sweden 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SolTech Energy Sweden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

Online Brands and SolTech Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Online Brands and SolTech Energy

The main advantage of trading using opposite Online Brands and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Online Brands position performs unexpectedly, SolTech Energy 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 SolTech Energy will offset losses from the drop in SolTech Energy's long position.
The idea behind Online Brands Nordic and SolTech Energy Sweden 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like