Correlation Between Checkin Group and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Checkin Group and Zwipe AS 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 Zwipe AS 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 Zwipe AS, you can compare the effects of market volatilities on Checkin Group and Zwipe AS 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 Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Checkin Group and Zwipe AS.
Diversification Opportunities for Checkin Group and Zwipe AS
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Checkin and Zwipe is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Checkin Group AB and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS 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 Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Checkin Group i.e., Checkin Group and Zwipe AS go up and down completely randomly.
Pair Corralation between Checkin Group and Zwipe AS
Assuming the 90 days trading horizon Checkin Group AB is expected to generate 0.59 times more return on investment than Zwipe AS. However, Checkin Group AB is 1.71 times less risky than Zwipe AS. It trades about 0.23 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.31 per unit of risk. If you would invest 1,430 in Checkin Group AB on August 29, 2024 and sell it today you would earn a total of 315.00 from holding Checkin Group AB or generate 22.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Checkin Group AB vs. Zwipe AS
Performance |
| Timeline |
| Checkin Group AB |
| Zwipe AS |
Checkin Group and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Checkin Group and Zwipe AS
The main advantage of trading using opposite Checkin Group and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Checkin Group position performs unexpectedly, Zwipe AS 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 Zwipe AS will offset losses from the drop in Zwipe AS'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 |
| Zwipe AS vs. Goobit Group AB | Zwipe AS vs. CoinShares International | Zwipe AS vs. Zignsec AB | Zwipe AS vs. Checkin Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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