Correlation Between CTT Systems and Inwido AB
Can any of the company-specific risk be diversified away by investing in both CTT Systems and Inwido AB 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 CTT Systems and Inwido AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTT Systems AB and Inwido AB, you can compare the effects of market volatilities on CTT Systems and Inwido AB 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 CTT Systems with a short position of Inwido AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTT Systems and Inwido AB.
Diversification Opportunities for CTT Systems and Inwido AB
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTT and Inwido is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CTT Systems AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido AB and CTT Systems 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 CTT Systems AB are associated (or correlated) with Inwido AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inwido AB has no effect on the direction of CTT Systems i.e., CTT Systems and Inwido AB go up and down completely randomly.
Pair Corralation between CTT Systems and Inwido AB
Assuming the 90 days trading horizon CTT Systems AB is expected to under-perform the Inwido AB. But the stock apears to be less risky and, when comparing its historical volatility, CTT Systems AB is 1.41 times less risky than Inwido AB. The stock trades about -0.13 of its potential returns per unit of risk. The Inwido AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 18,390 in Inwido AB on October 24, 2024 and sell it today you would earn a total of 700.00 from holding Inwido AB or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTT Systems AB vs. Inwido AB
Performance |
| Timeline |
| CTT Systems AB |
| Inwido AB |
CTT Systems and Inwido AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTT Systems and Inwido AB
The main advantage of trading using opposite CTT Systems and Inwido AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTT Systems position performs unexpectedly, Inwido AB 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 Inwido AB will offset losses from the drop in Inwido AB's long position.| CTT Systems vs. Enea AB | CTT Systems vs. BTS Group AB | CTT Systems vs. CellaVision AB | CTT Systems vs. Biotage AB |
| Inwido AB vs. Raketech Group Holding | Inwido AB vs. USWE Sports AB | Inwido AB vs. Addtech AB | Inwido AB vs. Vitec Software 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |