Correlation Between Proact IT and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both Proact IT and Stillfront 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 Proact IT and Stillfront Group 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 Stillfront Group AB, you can compare the effects of market volatilities on Proact IT and Stillfront 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 Proact IT with a short position of Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proact IT and Stillfront Group.
Diversification Opportunities for Proact IT and Stillfront Group
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Proact and Stillfront is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Proact IT Group and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Proact IT i.e., Proact IT and Stillfront Group go up and down completely randomly.
Pair Corralation between Proact IT and Stillfront Group
Assuming the 90 days trading horizon Proact IT Group is expected to generate 0.59 times more return on investment than Stillfront Group. However, Proact IT Group is 1.7 times less risky than Stillfront Group. It trades about 0.04 of its potential returns per unit of risk. Stillfront Group AB is currently generating about -0.01 per unit of risk. If you would invest 10,480 in Proact IT Group on September 26, 2025 and sell it today you would earn a total of 800.00 from holding Proact IT Group or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proact IT Group vs. Stillfront Group AB
Performance |
| Timeline |
| Proact IT Group |
| Stillfront Group |
Proact IT and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proact IT and Stillfront Group
The main advantage of trading using opposite Proact IT and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proact IT position performs unexpectedly, Stillfront 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 Stillfront Group will offset losses from the drop in Stillfront Group'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 |
| Stillfront Group vs. Dustin Group AB | Stillfront Group vs. Know IT AB | Stillfront Group vs. Enad Global 7 | Stillfront Group vs. Proact IT Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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