Correlation Between SinterCast and Ortivus AB

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

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

Diversification Opportunities for SinterCast and Ortivus AB

0.12

Correlation Coefficient

SinterCast  Ortivus AB

Average diversification

The 3 months correlation between SinterCast and Ortivus is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Ortivus AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ortivus AB ser and SinterCast 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 SinterCast AB are associated (or correlated) with Ortivus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ortivus AB ser has no effect on the direction of SinterCast i.e., SinterCast and Ortivus AB go up and down completely randomly.

Pair Corralation between SinterCast and Ortivus AB

Assuming the 90 days trading horizon SinterCast is expected to generate 2.72 times less return on investment than Ortivus AB. But when comparing it to its historical volatility, SinterCast AB is 5.53 times less risky than Ortivus AB. It trades about 0.17 of its potential returns per unit of risk. Ortivus AB ser is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  280.00  in Ortivus AB ser on April 24, 2025 and sell it today you would earn a total of  69.00  from holding Ortivus AB ser or generate 24.64% return on investment over 90 days.

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

SinterCast AB  vs.  Ortivus AB ser

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ortivus AB ser

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ortivus AB ser are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ortivus AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SinterCast and Ortivus AB

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

The idea behind SinterCast AB and Ortivus AB ser 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.