Correlation Between Kinnevik Investment and Deltex Medical
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Deltex Medical 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 Deltex Medical 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 Deltex Medical Group, you can compare the effects of market volatilities on Kinnevik Investment and Deltex Medical 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 Deltex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Deltex Medical.
Diversification Opportunities for Kinnevik Investment and Deltex Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kinnevik and Deltex is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical Group 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 Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Deltex Medical go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Deltex Medical
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 0.56 times more return on investment than Deltex Medical. However, Kinnevik Investment AB is 1.77 times less risky than Deltex Medical. It trades about 0.03 of its potential returns per unit of risk. Deltex Medical Group is currently generating about -0.22 per unit of risk. If you would invest 7,534 in Kinnevik Investment AB on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Kinnevik Investment AB or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Deltex Medical Group
Performance |
| Timeline |
| Kinnevik Investment |
| Deltex Medical Group |
Kinnevik Investment and Deltex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Deltex Medical
The main advantage of trading using opposite Kinnevik Investment and Deltex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Deltex Medical 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 Deltex Medical will offset losses from the drop in Deltex Medical's long position.| Kinnevik Investment vs. Intermediate Capital Group | Kinnevik Investment vs. AcadeMedia AB | Kinnevik Investment vs. International Biotechnology Trust | Kinnevik Investment vs. Flutter Entertainment PLC |
| Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Samsung Electronics Co | Deltex Medical vs. Hyundai Motor | Deltex Medical vs. Toyota Motor Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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