Correlation Between Text SA and Pexip Holding

Can any of the company-specific risk be diversified away by investing in both Text SA and Pexip Holding 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 Text SA and Pexip Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Text SA and Pexip Holding ASA, you can compare the effects of market volatilities on Text SA and Pexip Holding 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 Text SA with a short position of Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Text SA and Pexip Holding.

Diversification Opportunities for Text SA and Pexip Holding

0.27

Correlation Coefficient

Text SA  Pexip Holding

Modest diversification

The 3 months correlation between Text and Pexip is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Text SA and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding ASA and Text SA 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 Text SA are associated (or correlated) with Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of Text SA i.e., Text SA and Pexip Holding go up and down completely randomly.

Pair Corralation between Text SA and Pexip Holding

Assuming the 90 days horizon Text SA is expected to under-perform the Pexip Holding. In addition to that, Text SA is 1.12 times more volatile than Pexip Holding ASA. It trades about 0.0 of its total potential returns per unit of risk. Pexip Holding ASA is currently generating about 0.12 per unit of volatility. If you would invest  605.00  in Pexip Holding ASA on August 18, 2025 and sell it today you would earn a total of  47.00  from holding Pexip Holding ASA or generate 7.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

Text SA  vs.  Pexip Holding ASA

Text SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Text SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Text SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pexip Holding ASA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pexip Holding ASA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Pexip Holding may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Text SA and Pexip Holding

The main advantage of trading using opposite Text SA and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Text SA position performs unexpectedly, Pexip Holding 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 Pexip Holding will offset losses from the drop in Pexip Holding's long position.

The idea behind Text SA and Pexip Holding ASA 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.

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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.