Correlation Between Kinnevik Investment and Helical Bar
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Helical Bar 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 Helical Bar 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 Helical Bar Plc, you can compare the effects of market volatilities on Kinnevik Investment and Helical Bar 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 Helical Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Helical Bar.
Diversification Opportunities for Kinnevik Investment and Helical Bar
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinnevik and Helical is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Helical Bar Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helical Bar Plc 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 Helical Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helical Bar Plc has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Helical Bar go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Helical Bar
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 0.9 times more return on investment than Helical Bar. However, Kinnevik Investment AB is 1.11 times less risky than Helical Bar. It trades about 0.27 of its potential returns per unit of risk. Helical Bar Plc is currently generating about -0.06 per unit of risk. If you would invest 7,344 in Kinnevik Investment AB on September 13, 2024 and sell it today you would earn a total of 635.00 from holding Kinnevik Investment AB or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Helical Bar Plc
Performance |
| Timeline |
| Kinnevik Investment |
| Helical Bar Plc |
Kinnevik Investment and Helical Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Helical Bar
The main advantage of trading using opposite Kinnevik Investment and Helical Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Helical Bar 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 Helical Bar will offset losses from the drop in Helical Bar's long position.| Kinnevik Investment vs. Premier Foods PLC | Kinnevik Investment vs. Prudential Financial | Kinnevik Investment vs. Ameriprise Financial | Kinnevik Investment vs. Komercni Banka |
| Helical Bar vs. Silvercorp Metals | Helical Bar vs. Gamma Communications PLC | Helical Bar vs. GreenX Metals | Helical Bar vs. Batm Advanced Communications |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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