Correlation Between BROADWIND ENRGY and ATLAND SA
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and ATLAND SA 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 BROADWIND ENRGY and ATLAND SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and ATLAND SA INH, you can compare the effects of market volatilities on BROADWIND ENRGY and ATLAND SA 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 BROADWIND ENRGY with a short position of ATLAND SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and ATLAND SA.
Diversification Opportunities for BROADWIND ENRGY and ATLAND SA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BROADWIND and ATLAND is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and ATLAND SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLAND SA INH and BROADWIND ENRGY 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 BROADWIND ENRGY are associated (or correlated) with ATLAND SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATLAND SA INH has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and ATLAND SA go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and ATLAND SA
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to under-perform the ATLAND SA. In addition to that, BROADWIND ENRGY is 3.69 times more volatile than ATLAND SA INH. It trades about -0.14 of its total potential returns per unit of risk. ATLAND SA INH is currently generating about 0.06 per unit of volatility. If you would invest 4,160 in ATLAND SA INH on November 2, 2024 and sell it today you would earn a total of 60.00 from holding ATLAND SA INH or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BROADWIND ENRGY vs. ATLAND SA INH
Performance |
| Timeline |
| BROADWIND ENRGY |
| ATLAND SA INH |
BROADWIND ENRGY and ATLAND SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and ATLAND SA
The main advantage of trading using opposite BROADWIND ENRGY and ATLAND SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, ATLAND SA 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 ATLAND SA will offset losses from the drop in ATLAND SA's long position.| BROADWIND ENRGY vs. CyberArk Software | BROADWIND ENRGY vs. FORMPIPE SOFTWARE AB | BROADWIND ENRGY vs. MidCap Financial Investment | BROADWIND ENRGY vs. AGNC INVESTMENT |
| ATLAND SA vs. Urban Outfitters | ATLAND SA vs. WILLIS LEASE FIN | ATLAND SA vs. The Boston Beer | ATLAND SA vs. Scandinavian Tobacco Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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