Correlation Between Studsvik and Intellego Technologies
Can any of the company-specific risk be diversified away by investing in both Studsvik and Intellego Technologies 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 Studsvik and Intellego Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Studsvik AB and Intellego Technologies AB, you can compare the effects of market volatilities on Studsvik and Intellego Technologies 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 Studsvik with a short position of Intellego Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Studsvik and Intellego Technologies.
Diversification Opportunities for Studsvik and Intellego Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Studsvik and Intellego is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Studsvik AB and Intellego Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellego Technologies and Studsvik 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 Studsvik AB are associated (or correlated) with Intellego Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellego Technologies has no effect on the direction of Studsvik i.e., Studsvik and Intellego Technologies go up and down completely randomly.
Pair Corralation between Studsvik and Intellego Technologies
Assuming the 90 days trading horizon Studsvik AB is expected to generate 0.28 times more return on investment than Intellego Technologies. However, Studsvik AB is 3.52 times less risky than Intellego Technologies. It trades about 0.07 of its potential returns per unit of risk. Intellego Technologies AB is currently generating about -0.11 per unit of risk. If you would invest 27,200 in Studsvik AB on August 28, 2025 and sell it today you would earn a total of 1,300 from holding Studsvik AB or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Studsvik AB vs. Intellego Technologies AB
Performance |
| Timeline |
| Studsvik AB |
| Intellego Technologies |
Studsvik and Intellego Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Studsvik and Intellego Technologies
The main advantage of trading using opposite Studsvik and Intellego Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Studsvik position performs unexpectedly, Intellego Technologies 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 Intellego Technologies will offset losses from the drop in Intellego Technologies' long position.| Studsvik vs. Lime Technologies AB | Studsvik vs. Swedbank AB | Studsvik vs. SaltX Technology Holding | Studsvik vs. Vitec Software Group |
| Intellego Technologies vs. USWE Sports AB | Intellego Technologies vs. Lindab International AB | Intellego Technologies vs. eEducation Albert AB | Intellego Technologies vs. Eniro 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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