Correlation Between Cadeler As and Klaveness Combination
Can any of the company-specific risk be diversified away by investing in both Cadeler As and Klaveness Combination 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 Cadeler As and Klaveness Combination into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler As and Klaveness Combination Carriers, you can compare the effects of market volatilities on Cadeler As and Klaveness Combination 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 Cadeler As with a short position of Klaveness Combination. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler As and Klaveness Combination.
Diversification Opportunities for Cadeler As and Klaveness Combination
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cadeler and Klaveness is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler As and Klaveness Combination Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaveness Combination and Cadeler 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 Cadeler As are associated (or correlated) with Klaveness Combination. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaveness Combination has no effect on the direction of Cadeler As i.e., Cadeler As and Klaveness Combination go up and down completely randomly.
Pair Corralation between Cadeler As and Klaveness Combination
Assuming the 90 days trading horizon Cadeler As is expected to under-perform the Klaveness Combination. But the stock apears to be less risky and, when comparing its historical volatility, Cadeler As is 1.06 times less risky than Klaveness Combination. The stock trades about -0.3 of its potential returns per unit of risk. The Klaveness Combination Carriers is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,380 in Klaveness Combination Carriers on October 24, 2024 and sell it today you would earn a total of 50.00 from holding Klaveness Combination Carriers or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadeler As vs. Klaveness Combination Carriers
Performance |
| Timeline |
| Cadeler As |
| Klaveness Combination |
Cadeler As and Klaveness Combination Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadeler As and Klaveness Combination
The main advantage of trading using opposite Cadeler As and Klaveness Combination positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler As position performs unexpectedly, Klaveness Combination 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 Klaveness Combination will offset losses from the drop in Klaveness Combination's long position.The idea behind Cadeler As and Klaveness Combination Carriers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Klaveness Combination vs. Sparebanken Ost | Klaveness Combination vs. Kraft Bank Asa | Klaveness Combination vs. Nordic Mining ASA | Klaveness Combination vs. Odfjell Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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