Correlation Between Chordate Medical and Klimator
Can any of the company-specific risk be diversified away by investing in both Chordate Medical 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 Chordate Medical and Klimator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chordate Medical Holding and Klimator AB, you can compare the effects of market volatilities on Chordate Medical 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 Chordate Medical with a short position of Klimator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chordate Medical and Klimator.
Diversification Opportunities for Chordate Medical and Klimator
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chordate and Klimator is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chordate Medical Holding and Klimator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klimator AB and Chordate Medical 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 Chordate Medical Holding 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 Chordate Medical i.e., Chordate Medical and Klimator go up and down completely randomly.
Pair Corralation between Chordate Medical and Klimator
Assuming the 90 days trading horizon Chordate Medical Holding is expected to under-perform the Klimator. In addition to that, Chordate Medical is 2.16 times more volatile than Klimator AB. It trades about -0.05 of its total potential returns per unit of risk. Klimator AB is currently generating about 0.01 per unit of volatility. If you would invest 211.00 in Klimator AB on August 28, 2024 and sell it today you would lose (1.00) from holding Klimator AB or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chordate Medical Holding vs. Klimator AB
Performance |
| Timeline |
| Chordate Medical Holding |
| Klimator AB |
Chordate Medical and Klimator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chordate Medical and Klimator
The main advantage of trading using opposite Chordate Medical and Klimator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chordate Medical 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.| Chordate Medical vs. Xvivo Perfusion AB | Chordate Medical vs. SpectraCure AB | Chordate Medical vs. Senzime AB |
| Klimator vs. Sinch AB | Klimator vs. Hexatronic Group AB | Klimator vs. Samhllsbyggnadsbolaget i Norden | Klimator vs. Storskogen 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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