Correlation Between Upsales Technology and CTT Systems
Can any of the company-specific risk be diversified away by investing in both Upsales Technology and CTT Systems 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 Upsales Technology and CTT Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upsales Technology AB and CTT Systems AB, you can compare the effects of market volatilities on Upsales Technology and CTT Systems 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 Upsales Technology with a short position of CTT Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and CTT Systems.
Diversification Opportunities for Upsales Technology and CTT Systems
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Upsales and CTT is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology AB and CTT Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Systems AB and Upsales Technology 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 Upsales Technology AB are associated (or correlated) with CTT Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Systems AB has no effect on the direction of Upsales Technology i.e., Upsales Technology and CTT Systems go up and down completely randomly.
Pair Corralation between Upsales Technology and CTT Systems
Assuming the 90 days trading horizon Upsales Technology AB is expected to generate 0.69 times more return on investment than CTT Systems. However, Upsales Technology AB is 1.46 times less risky than CTT Systems. It trades about -0.05 of its potential returns per unit of risk. CTT Systems AB is currently generating about -0.09 per unit of risk. If you would invest 3,420 in Upsales Technology AB on September 1, 2025 and sell it today you would lose (320.00) from holding Upsales Technology AB or give up 9.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. CTT Systems AB
Performance |
| Timeline |
| Upsales Technology |
| CTT Systems AB |
Upsales Technology and CTT Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and CTT Systems
The main advantage of trading using opposite Upsales Technology and CTT Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology position performs unexpectedly, CTT Systems 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 CTT Systems will offset losses from the drop in CTT Systems' long position.The idea behind Upsales Technology AB and CTT Systems AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CTT Systems vs. Havsfrun Investment AB | CTT Systems vs. Nordic Asia Investment | CTT Systems vs. 24SevenOffice Scandinavia AB | CTT Systems vs. Online Brands Nordic |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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