Correlation Between Checkin Group and White Pearl
Can any of the company-specific risk be diversified away by investing in both Checkin Group and White Pearl 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 Checkin Group and White Pearl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Checkin Group AB and White Pearl Technology, you can compare the effects of market volatilities on Checkin Group and White Pearl 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 Checkin Group with a short position of White Pearl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Checkin Group and White Pearl.
Diversification Opportunities for Checkin Group and White Pearl
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Checkin and White is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Checkin Group AB and White Pearl Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Pearl Technology and Checkin Group 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 Checkin Group AB are associated (or correlated) with White Pearl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Pearl Technology has no effect on the direction of Checkin Group i.e., Checkin Group and White Pearl go up and down completely randomly.
Pair Corralation between Checkin Group and White Pearl
Assuming the 90 days trading horizon Checkin Group AB is expected to under-perform the White Pearl. But the stock apears to be less risky and, when comparing its historical volatility, Checkin Group AB is 1.27 times less risky than White Pearl. The stock trades about -0.15 of its potential returns per unit of risk. The White Pearl Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 420.00 in White Pearl Technology on November 28, 2024 and sell it today you would earn a total of 258.00 from holding White Pearl Technology or generate 61.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Checkin Group AB vs. White Pearl Technology
Performance |
| Timeline |
| Checkin Group AB |
| White Pearl Technology |
Checkin Group and White Pearl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Checkin Group and White Pearl
The main advantage of trading using opposite Checkin Group and White Pearl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Checkin Group position performs unexpectedly, White Pearl 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 White Pearl will offset losses from the drop in White Pearl's long position.| Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
| White Pearl vs. Vitec Software Group | White Pearl vs. Flexion Mobile PLC | White Pearl vs. Train Alliance Sweden | White Pearl vs. Viva Wine Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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