Correlation Between Aquaporin and GN Store
Can any of the company-specific risk be diversified away by investing in both Aquaporin and GN Store 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 Aquaporin and GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquaporin AS and GN Store Nord, you can compare the effects of market volatilities on Aquaporin and GN Store 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 Aquaporin with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquaporin and GN Store.
Diversification Opportunities for Aquaporin and GN Store
Almost no diversification
The 3 months correlation between Aquaporin and GN Store is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aquaporin AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and Aquaporin 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 Aquaporin AS are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Aquaporin i.e., Aquaporin and GN Store go up and down completely randomly.
Pair Corralation between Aquaporin and GN Store
Assuming the 90 days trading horizon Aquaporin AS is expected to under-perform the GN Store. In addition to that, Aquaporin is 1.37 times more volatile than GN Store Nord. It trades about -0.25 of its total potential returns per unit of risk. GN Store Nord is currently generating about -0.06 per unit of volatility. If you would invest 14,265 in GN Store Nord on September 12, 2024 and sell it today you would lose (545.00) from holding GN Store Nord or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquaporin AS vs. GN Store Nord
Performance |
| Timeline |
| Aquaporin AS |
| GN Store Nord |
Aquaporin and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquaporin and GN Store
The main advantage of trading using opposite Aquaporin and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquaporin position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| Aquaporin vs. Green Hydrogen Systems | Aquaporin vs. FOM Technologies AS | Aquaporin vs. ALK Abell AS | Aquaporin vs. Trifork Holding AG |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |