Correlation Between Raketech Group and Sdiptech

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

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

Diversification Opportunities for Raketech Group and Sdiptech

-0.41

Correlation Coefficient

Raketech Group  Sdiptech

Very good diversification

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

Pair Corralation between Raketech Group and Sdiptech

Assuming the 90 days trading horizon Raketech Group Holding is expected to under-perform the Sdiptech. In addition to that, Raketech Group is 1.24 times more volatile than Sdiptech AB. It trades about -0.14 of its total potential returns per unit of risk. Sdiptech AB is currently generating about 0.18 per unit of volatility. If you would invest  10,627  in Sdiptech AB on April 23, 2025 and sell it today you would earn a total of  2,623  from holding Sdiptech AB or generate 24.68% return on investment over 90 days.

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

Raketech Group Holding  vs.  Sdiptech AB

Raketech Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raketech Group Holding 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.

Sdiptech AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sdiptech AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Sdiptech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Raketech Group and Sdiptech

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

The idea behind Raketech Group Holding and Sdiptech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.