Correlation Between Ambu AS and Wirtek AS
Can any of the company-specific risk be diversified away by investing in both Ambu AS and Wirtek AS 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 Ambu AS and Wirtek AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and Wirtek AS, you can compare the effects of market volatilities on Ambu AS and Wirtek AS 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 Ambu AS with a short position of Wirtek AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and Wirtek AS.
Diversification Opportunities for Ambu AS and Wirtek AS
Very poor diversification
The 3 months correlation between Ambu and Wirtek is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and Wirtek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wirtek AS and Ambu AS 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 Ambu AS are associated (or correlated) with Wirtek AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wirtek AS has no effect on the direction of Ambu AS i.e., Ambu AS and Wirtek AS go up and down completely randomly.
Pair Corralation between Ambu AS and Wirtek AS
Assuming the 90 days trading horizon Ambu AS is expected to generate 0.82 times more return on investment than Wirtek AS. However, Ambu AS is 1.23 times less risky than Wirtek AS. It trades about -0.15 of its potential returns per unit of risk. Wirtek AS is currently generating about -0.48 per unit of risk. If you would invest 11,266 in Ambu AS on September 20, 2024 and sell it today you would lose (546.00) from holding Ambu AS or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambu AS vs. Wirtek AS
Performance |
| Timeline |
| Ambu AS |
| Wirtek AS |
Ambu AS and Wirtek AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and Wirtek AS
The main advantage of trading using opposite Ambu AS and Wirtek AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, Wirtek AS 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 Wirtek AS will offset losses from the drop in Wirtek AS's long position.| Ambu AS vs. Bavarian Nordic | Ambu AS vs. Genmab AS | Ambu AS vs. GN Store Nord | Ambu AS vs. DSV Panalpina AS |
| Wirtek AS vs. ChemoMetec AS | Wirtek AS vs. Ambu AS | Wirtek AS vs. Genmab AS | Wirtek AS vs. Zealand Pharma AS |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |