Correlation Between Kinnevik Investment and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Intuitive Investments 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 Intuitive Investments 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 Intuitive Investments Group, you can compare the effects of market volatilities on Kinnevik Investment and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Intuitive Investments.
Diversification Opportunities for Kinnevik Investment and Intuitive Investments
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinnevik and Intuitive is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Intuitive Investments go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Intuitive Investments
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Intuitive Investments. But the stock apears to be less risky and, when comparing its historical volatility, Kinnevik Investment AB is 2.77 times less risky than Intuitive Investments. The stock trades about -0.06 of its potential returns per unit of risk. The Intuitive Investments Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Intuitive Investments Group on October 12, 2024 and sell it today you would earn a total of 7,350 from holding Intuitive Investments Group or generate 147.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Intuitive Investments Group
Performance |
| Timeline |
| Kinnevik Investment |
| Intuitive Investments |
Kinnevik Investment and Intuitive Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Intuitive Investments
The main advantage of trading using opposite Kinnevik Investment and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.| Kinnevik Investment vs. Walmart | Kinnevik Investment vs. BYD Co | Kinnevik Investment vs. Volkswagen AG | Kinnevik Investment vs. Volkswagen AG Non Vtg |
| Intuitive Investments vs. Zegona Communications Plc | Intuitive Investments vs. First Class Metals | Intuitive Investments vs. Fonix Mobile plc | Intuitive Investments vs. Aeorema Communications 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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