Correlation Between Proact IT and Exsitec Holding
Can any of the company-specific risk be diversified away by investing in both Proact IT and Exsitec Holding 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 Proact IT and Exsitec Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proact IT Group and Exsitec Holding AB, you can compare the effects of market volatilities on Proact IT and Exsitec Holding 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 Proact IT with a short position of Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proact IT and Exsitec Holding.
Diversification Opportunities for Proact IT and Exsitec Holding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Proact and Exsitec is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Proact IT Group and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding AB and Proact IT 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 Proact IT Group are associated (or correlated) with Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of Proact IT i.e., Proact IT and Exsitec Holding go up and down completely randomly.
Pair Corralation between Proact IT and Exsitec Holding
Assuming the 90 days trading horizon Proact IT Group is expected to generate 0.88 times more return on investment than Exsitec Holding. However, Proact IT Group is 1.14 times less risky than Exsitec Holding. It trades about 0.3 of its potential returns per unit of risk. Exsitec Holding AB is currently generating about 0.12 per unit of risk. If you would invest 10,320 in Proact IT Group on September 23, 2025 and sell it today you would earn a total of 780.00 from holding Proact IT Group or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proact IT Group vs. Exsitec Holding AB
Performance |
| Timeline |
| Proact IT Group |
| Exsitec Holding AB |
Proact IT and Exsitec Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proact IT and Exsitec Holding
The main advantage of trading using opposite Proact IT and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proact IT position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding's long position.| Proact IT vs. Dustin Group AB | Proact IT vs. Know IT AB | Proact IT vs. Exsitec Holding AB | Proact IT vs. Softronic AB |
| Exsitec Holding vs. Vertiseit AB Series | Exsitec Holding vs. Proact IT Group | Exsitec Holding vs. Dustin Group AB | Exsitec Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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