Correlation Between ChargePanel and Klimator
Can any of the company-specific risk be diversified away by investing in both ChargePanel and Klimator 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 Klimator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChargePanel AB and Klimator AB, you can compare the effects of market volatilities on ChargePanel and Klimator 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 Klimator. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChargePanel and Klimator.
Diversification Opportunities for ChargePanel and Klimator
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChargePanel and Klimator is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ChargePanel AB and Klimator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klimator AB 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 Klimator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klimator AB has no effect on the direction of ChargePanel i.e., ChargePanel and Klimator go up and down completely randomly.
Pair Corralation between ChargePanel and Klimator
Assuming the 90 days trading horizon ChargePanel AB is expected to under-perform the Klimator. In addition to that, ChargePanel is 1.43 times more volatile than Klimator AB. It trades about -0.06 of its total potential returns per unit of risk. Klimator AB is currently generating about 0.08 per unit of volatility. If you would invest 128.00 in Klimator AB on September 4, 2024 and sell it today you would earn a total of 70.00 from holding Klimator AB or generate 54.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChargePanel AB vs. Klimator AB
Performance |
| Timeline |
| ChargePanel AB |
| Klimator AB |
ChargePanel and Klimator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChargePanel and Klimator
The main advantage of trading using opposite ChargePanel and Klimator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChargePanel position performs unexpectedly, Klimator 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 Klimator will offset losses from the drop in Klimator's long position.The idea behind ChargePanel AB and Klimator AB 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.| Klimator vs. Nordic Asia Investment | Klimator vs. Lundin Mining | Klimator vs. Catena Media plc | Klimator vs. Invisio Communications 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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