Correlation Between Kinnevik Investment and Iron Mountain
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Iron Mountain 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 Kinnevik Investment and Iron Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Iron Mountain, you can compare the effects of market volatilities on Kinnevik Investment and Iron Mountain 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 Kinnevik Investment with a short position of Iron Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Iron Mountain.
Diversification Opportunities for Kinnevik Investment and Iron Mountain
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinnevik and Iron is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Iron Mountain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Mountain and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Iron Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Mountain has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Iron Mountain go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Iron Mountain
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 0.86 times more return on investment than Iron Mountain. However, Kinnevik Investment AB is 1.16 times less risky than Iron Mountain. It trades about 0.23 of its potential returns per unit of risk. Iron Mountain is currently generating about 0.06 per unit of risk. If you would invest 8,043 in Kinnevik Investment AB on November 8, 2024 and sell it today you would earn a total of 924.00 from holding Kinnevik Investment AB or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Iron Mountain
Performance |
| Timeline |
| Kinnevik Investment |
| Iron Mountain |
Kinnevik Investment and Iron Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Iron Mountain
The main advantage of trading using opposite Kinnevik Investment and Iron Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Iron Mountain 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 Iron Mountain will offset losses from the drop in Iron Mountain's long position.The idea behind Kinnevik Investment AB and Iron Mountain 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.
| Iron Mountain vs. Wizz Air Holdings | Iron Mountain vs. Charter Communications Cl | Iron Mountain vs. Uber Technologies | Iron Mountain vs. Smarttech247 Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |