Correlation Between Pexip Holding and Techstep ASA
Can any of the company-specific risk be diversified away by investing in both Pexip Holding and Techstep ASA 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 Pexip Holding and Techstep ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pexip Holding ASA and Techstep ASA, you can compare the effects of market volatilities on Pexip Holding and Techstep ASA 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 Pexip Holding with a short position of Techstep ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pexip Holding and Techstep ASA.
Diversification Opportunities for Pexip Holding and Techstep ASA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pexip and Techstep is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pexip Holding ASA and Techstep ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techstep ASA and Pexip 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 Pexip Holding ASA are associated (or correlated) with Techstep ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techstep ASA has no effect on the direction of Pexip Holding i.e., Pexip Holding and Techstep ASA go up and down completely randomly.
Pair Corralation between Pexip Holding and Techstep ASA
Assuming the 90 days trading horizon Pexip Holding ASA is expected to generate 0.89 times more return on investment than Techstep ASA. However, Pexip Holding ASA is 1.13 times less risky than Techstep ASA. It trades about -0.03 of its potential returns per unit of risk. Techstep ASA is currently generating about -0.07 per unit of risk. If you would invest 6,280 in Pexip Holding ASA on July 20, 2025 and sell it today you would lose (340.00) from holding Pexip Holding ASA or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pexip Holding ASA vs. Techstep ASA
Performance |
| Timeline |
| Pexip Holding ASA |
| Techstep ASA |
Pexip Holding and Techstep ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pexip Holding and Techstep ASA
The main advantage of trading using opposite Pexip Holding and Techstep ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pexip Holding position performs unexpectedly, Techstep ASA 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 Techstep ASA will offset losses from the drop in Techstep ASA's long position.| Pexip Holding vs. SmartCraft ASA | Pexip Holding vs. Bouvet | Pexip Holding vs. Techstep ASA | Pexip Holding vs. Idex ASA |
| Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Arribatec Solutions ASA | Techstep ASA vs. Cyviz AS | Techstep ASA vs. Huddlestock Fintech As |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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