Correlation Between Addtech AB and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both Addtech AB and PT Wintermar 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 Addtech AB and PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addtech AB and PT Wintermar Offshore, you can compare the effects of market volatilities on Addtech AB and PT Wintermar 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 Addtech AB with a short position of PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and PT Wintermar.
Diversification Opportunities for Addtech AB and PT Wintermar
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Addtech and W6O is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore and Addtech AB 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 Addtech AB are associated (or correlated) with PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of Addtech AB i.e., Addtech AB and PT Wintermar go up and down completely randomly.
Pair Corralation between Addtech AB and PT Wintermar
Assuming the 90 days trading horizon Addtech AB is expected to generate 0.45 times more return on investment than PT Wintermar. However, Addtech AB is 2.21 times less risky than PT Wintermar. It trades about 0.12 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about -0.08 per unit of risk. If you would invest 2,590 in Addtech AB on October 30, 2024 and sell it today you would earn a total of 174.00 from holding Addtech AB or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. PT Wintermar Offshore
Performance |
| Timeline |
| Addtech AB |
| PT Wintermar Offshore |
Addtech AB and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and PT Wintermar
The main advantage of trading using opposite Addtech AB and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, PT Wintermar 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 PT Wintermar will offset losses from the drop in PT Wintermar's long position.| Addtech AB vs. Neinor Homes SA | Addtech AB vs. Daito Trust Construction | Addtech AB vs. AGRICULTBK HADR25 YC | Addtech AB vs. CITY OFFICE REIT |
| PT Wintermar vs. AP Mller | PT Wintermar vs. AP Mller | PT Wintermar vs. HAPAG LLOYD UNSPADR 12 | PT Wintermar vs. DFDS 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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