Correlation Between Waystream Holding and Systemair

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

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

Diversification Opportunities for Waystream Holding and Systemair

0.0

Correlation Coefficient

Waystream Holding  Systemair

Pay attention - limited upside

The 3 months correlation between Waystream and Systemair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Waystream Holding AB and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Waystream 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 Waystream Holding AB are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Waystream Holding i.e., Waystream Holding and Systemair go up and down completely randomly.

Pair Corralation between Waystream Holding and Systemair

If you would invest  8,340  in Systemair AB on February 3, 2025 and sell it today you would earn a total of  110.00  from holding Systemair AB or generate 1.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Waystream Holding AB  vs.  Systemair AB

Waystream Holding

Risk-Adjusted Performance

Solid

Over the last 90 days Waystream Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Waystream Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Systemair AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Systemair AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Systemair is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Waystream Holding and Systemair

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

The idea behind Waystream Holding AB and Systemair 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.