Correlation Between Exsitec Holding and Proact IT
Can any of the company-specific risk be diversified away by investing in both Exsitec Holding and Proact IT 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 Exsitec Holding and Proact IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exsitec Holding AB and Proact IT Group, you can compare the effects of market volatilities on Exsitec Holding and Proact IT 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 Exsitec Holding with a short position of Proact IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exsitec Holding and Proact IT.
Diversification Opportunities for Exsitec Holding and Proact IT
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exsitec and Proact is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Exsitec Holding AB and Proact IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proact IT Group and Exsitec 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 Exsitec Holding AB are associated (or correlated) with Proact IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proact IT Group has no effect on the direction of Exsitec Holding i.e., Exsitec Holding and Proact IT go up and down completely randomly.
Pair Corralation between Exsitec Holding and Proact IT
Assuming the 90 days trading horizon Exsitec Holding is expected to generate 1.78 times less return on investment than Proact IT. In addition to that, Exsitec Holding is 1.01 times more volatile than Proact IT Group. It trades about 0.07 of its total potential returns per unit of risk. Proact IT Group is currently generating about 0.13 per unit of volatility. If you would invest 9,360 in Proact IT Group on September 22, 2025 and sell it today you would earn a total of 1,740 from holding Proact IT Group or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exsitec Holding AB vs. Proact IT Group
Performance |
| Timeline |
| Exsitec Holding AB |
| Proact IT Group |
Exsitec Holding and Proact IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exsitec Holding and Proact IT
The main advantage of trading using opposite Exsitec Holding and Proact IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exsitec Holding position performs unexpectedly, Proact IT 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 Proact IT will offset losses from the drop in Proact IT's long position.| Exsitec Holding vs. Vertiseit AB Series | Exsitec Holding vs. Proact IT Group | Exsitec Holding vs. Dustin Group AB | Exsitec Holding vs. Softronic AB |
| Proact IT vs. Dustin Group AB | Proact IT vs. Know IT AB | Proact IT vs. Exsitec Holding AB | Proact IT vs. Softronic AB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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