Correlation Between ChargePanel and Havsfrun Investment
Can any of the company-specific risk be diversified away by investing in both ChargePanel and Havsfrun Investment 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 ChargePanel and Havsfrun Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChargePanel AB and Havsfrun Investment AB, you can compare the effects of market volatilities on ChargePanel and Havsfrun Investment 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 ChargePanel with a short position of Havsfrun Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChargePanel and Havsfrun Investment.
Diversification Opportunities for ChargePanel and Havsfrun Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ChargePanel and Havsfrun is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ChargePanel AB and Havsfrun Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havsfrun Investment and ChargePanel 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 ChargePanel AB are associated (or correlated) with Havsfrun Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havsfrun Investment has no effect on the direction of ChargePanel i.e., ChargePanel and Havsfrun Investment go up and down completely randomly.
Pair Corralation between ChargePanel and Havsfrun Investment
Assuming the 90 days trading horizon ChargePanel AB is expected to under-perform the Havsfrun Investment. In addition to that, ChargePanel is 1.66 times more volatile than Havsfrun Investment AB. It trades about -0.03 of its total potential returns per unit of risk. Havsfrun Investment AB is currently generating about -0.01 per unit of volatility. If you would invest 1,310 in Havsfrun Investment AB on September 3, 2024 and sell it today you would lose (90.00) from holding Havsfrun Investment AB or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChargePanel AB vs. Havsfrun Investment AB
Performance |
| Timeline |
| ChargePanel AB |
| Havsfrun Investment |
ChargePanel and Havsfrun Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChargePanel and Havsfrun Investment
The main advantage of trading using opposite ChargePanel and Havsfrun Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChargePanel position performs unexpectedly, Havsfrun Investment 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 Havsfrun Investment will offset losses from the drop in Havsfrun Investment's long position.| ChargePanel vs. Bio Works Technologies AB | ChargePanel vs. SolTech Energy Sweden | ChargePanel vs. Zenicor Medical Systems | ChargePanel vs. Maven Wireless Sweden |
| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |