Correlation Between Elanders and Absolent Group
Can any of the company-specific risk be diversified away by investing in both Elanders and Absolent Group 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 Elanders and Absolent Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elanders AB and Absolent Group AB, you can compare the effects of market volatilities on Elanders and Absolent Group 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 Elanders with a short position of Absolent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elanders and Absolent Group.
Diversification Opportunities for Elanders and Absolent Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elanders and Absolent is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Elanders AB and Absolent Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolent Group AB and Elanders 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 Elanders AB are associated (or correlated) with Absolent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolent Group AB has no effect on the direction of Elanders i.e., Elanders and Absolent Group go up and down completely randomly.
Pair Corralation between Elanders and Absolent Group
Assuming the 90 days trading horizon Elanders AB is expected to generate 1.02 times more return on investment than Absolent Group. However, Elanders is 1.02 times more volatile than Absolent Group AB. It trades about 0.03 of its potential returns per unit of risk. Absolent Group AB is currently generating about -0.09 per unit of risk. If you would invest 5,980 in Elanders AB on August 27, 2025 and sell it today you would earn a total of 210.00 from holding Elanders AB or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elanders AB vs. Absolent Group AB
Performance |
| Timeline |
| Elanders AB |
| Absolent Group AB |
Elanders and Absolent Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elanders and Absolent Group
The main advantage of trading using opposite Elanders and Absolent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elanders position performs unexpectedly, Absolent Group 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 Absolent Group will offset losses from the drop in Absolent Group's long position.| Elanders vs. Axfood AB | Elanders vs. AVTECH Sweden AB | Elanders vs. Divio Technologies AB | Elanders vs. Sdiptech AB |
| Absolent Group vs. Lea Bank AB | Absolent Group vs. Havsfrun Investment AB | Absolent Group vs. Soder Sportfiske AB | Absolent Group vs. Arion banki hf |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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