Correlation Between Carlson Investments and Wikana SA
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Wikana 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 Carlson Investments and Wikana SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Wikana SA, you can compare the effects of market volatilities on Carlson Investments and Wikana 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 Carlson Investments with a short position of Wikana SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Wikana SA.
Diversification Opportunities for Carlson Investments and Wikana SA
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Carlson and Wikana is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Wikana SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wikana SA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Wikana SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wikana SA has no effect on the direction of Carlson Investments i.e., Carlson Investments and Wikana SA go up and down completely randomly.
Pair Corralation between Carlson Investments and Wikana SA
Assuming the 90 days trading horizon Carlson Investments SA is expected to under-perform the Wikana SA. In addition to that, Carlson Investments is 1.13 times more volatile than Wikana SA. It trades about -0.07 of its total potential returns per unit of risk. Wikana SA is currently generating about 0.06 per unit of volatility. If you would invest 284.00 in Wikana SA on September 3, 2024 and sell it today you would earn a total of 406.00 from holding Wikana SA or generate 142.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Carlson Investments SA vs. Wikana SA
Performance |
| Timeline |
| Carlson Investments |
| Wikana SA |
Carlson Investments and Wikana SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Wikana SA
The main advantage of trading using opposite Carlson Investments and Wikana SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Wikana 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 Wikana SA will offset losses from the drop in Wikana SA's long position.| Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. Kogeneracja SA | Carlson Investments vs. Asseco South Eastern |
| Wikana SA vs. Gaming Factory SA | Wikana SA vs. Play2Chill SA | Wikana SA vs. Logintrade SA | Wikana SA vs. GreenX Metals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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