Correlation Between SaltX Technology and SolTech Energy
Can any of the company-specific risk be diversified away by investing in both SaltX Technology 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 SaltX Technology and SolTech Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaltX Technology Holding and SolTech Energy Sweden, you can compare the effects of market volatilities on SaltX Technology 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 SaltX Technology with a short position of SolTech Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and SolTech Energy.
Diversification Opportunities for SaltX Technology and SolTech Energy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and SolTech is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding 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 SaltX Technology 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 SaltX Technology Holding 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 SaltX Technology i.e., SaltX Technology and SolTech Energy go up and down completely randomly.
Pair Corralation between SaltX Technology and SolTech Energy
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 1.13 times more return on investment than SolTech Energy. However, SaltX Technology is 1.13 times more volatile than SolTech Energy Sweden. It trades about 0.13 of its potential returns per unit of risk. SolTech Energy Sweden is currently generating about -0.14 per unit of risk. If you would invest 466.00 in SaltX Technology Holding on April 24, 2025 and sell it today you would earn a total of 144.00 from holding SaltX Technology Holding or generate 30.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SaltX Technology Holding vs. SolTech Energy Sweden
Performance |
Timeline |
SaltX Technology Holding |
SolTech Energy Sweden |
SaltX Technology and SolTech Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SaltX Technology and SolTech Energy
The main advantage of trading using opposite SaltX Technology and SolTech Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology 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.SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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