Correlation Between USWE Sports and Magle Chemoswed
Can any of the company-specific risk be diversified away by investing in both USWE Sports and Magle Chemoswed 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 USWE Sports and Magle Chemoswed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE Sports AB and Magle Chemoswed Holding, you can compare the effects of market volatilities on USWE Sports and Magle Chemoswed 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 USWE Sports with a short position of Magle Chemoswed. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE Sports and Magle Chemoswed.
Diversification Opportunities for USWE Sports and Magle Chemoswed
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and Magle is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding USWE Sports AB and Magle Chemoswed Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magle Chemoswed Holding and USWE Sports 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 USWE Sports AB are associated (or correlated) with Magle Chemoswed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magle Chemoswed Holding has no effect on the direction of USWE Sports i.e., USWE Sports and Magle Chemoswed go up and down completely randomly.
Pair Corralation between USWE Sports and Magle Chemoswed
Assuming the 90 days trading horizon USWE Sports AB is expected to generate 0.89 times more return on investment than Magle Chemoswed. However, USWE Sports AB is 1.12 times less risky than Magle Chemoswed. It trades about -0.05 of its potential returns per unit of risk. Magle Chemoswed Holding is currently generating about -0.1 per unit of risk. If you would invest 1,670 in USWE Sports AB on September 1, 2025 and sell it today you would lose (190.00) from holding USWE Sports AB or give up 11.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE Sports AB vs. Magle Chemoswed Holding
Performance |
| Timeline |
| USWE Sports AB |
| Magle Chemoswed Holding |
USWE Sports and Magle Chemoswed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE Sports and Magle Chemoswed
The main advantage of trading using opposite USWE Sports and Magle Chemoswed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE Sports position performs unexpectedly, Magle Chemoswed 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 Magle Chemoswed will offset losses from the drop in Magle Chemoswed's long position.| USWE Sports vs. Avanza Bank Holding | USWE Sports vs. Vitec Software Group | USWE Sports vs. Lea Bank AB | USWE Sports vs. JLT Mobile Computers |
| Magle Chemoswed vs. Catena Media plc | Magle Chemoswed vs. Nitro Games Oyj | Magle Chemoswed vs. S2Medical AB | Magle Chemoswed vs. GiG Software PLC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets |