Correlation Between Realfiction Holding and Zaplox AB

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

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

Diversification Opportunities for Realfiction Holding and Zaplox AB

0.77

Correlation Coefficient

Realfiction Holding  Zaplox AB

Poor diversification

The 3 months correlation between Realfiction and Zaplox is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Realfiction Holding AB and Zaplox AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaplox AB and Realfiction Holding 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 Realfiction Holding AB are associated (or correlated) with Zaplox AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaplox AB has no effect on the direction of Realfiction Holding i.e., Realfiction Holding and Zaplox AB go up and down completely randomly.

Pair Corralation between Realfiction Holding and Zaplox AB

Assuming the 90 days trading horizon Realfiction Holding AB is expected to under-perform the Zaplox AB. But the stock apears to be less risky and, when comparing its historical volatility, Realfiction Holding AB is 1.1 times less risky than Zaplox AB. The stock trades about -0.13 of its potential returns per unit of risk. The Zaplox AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Zaplox AB on April 24, 2025 and sell it today you would lose (5.00) from holding Zaplox AB or give up 5.0% of portfolio value over 90 days.

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

Realfiction Holding AB  vs.  Zaplox AB

Realfiction Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Realfiction Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Zaplox AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zaplox AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Zaplox AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Realfiction Holding and Zaplox AB

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

The idea behind Realfiction Holding AB and Zaplox 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.