Correlation Between Eolus Vind and Minesto AB
Can any of the company-specific risk be diversified away by investing in both Eolus Vind and Minesto 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 Eolus Vind and Minesto AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eolus Vind AB and Minesto AB, you can compare the effects of market volatilities on Eolus Vind and Minesto 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 Eolus Vind with a short position of Minesto AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eolus Vind and Minesto AB.
Diversification Opportunities for Eolus Vind and Minesto AB
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eolus and Minesto is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eolus Vind AB and Minesto AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minesto AB and Eolus Vind 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 Eolus Vind AB are associated (or correlated) with Minesto AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minesto AB has no effect on the direction of Eolus Vind i.e., Eolus Vind and Minesto AB go up and down completely randomly.
Pair Corralation between Eolus Vind and Minesto AB
Assuming the 90 days trading horizon Eolus Vind AB is expected to under-perform the Minesto AB. But the stock apears to be less risky and, when comparing its historical volatility, Eolus Vind AB is 2.43 times less risky than Minesto AB. The stock trades about -0.08 of its potential returns per unit of risk. The Minesto AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 463.00 in Minesto AB on August 26, 2024 and sell it today you would lose (219.00) from holding Minesto AB or give up 47.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eolus Vind AB vs. Minesto AB
Performance |
| Timeline |
| Eolus Vind AB |
| Minesto AB |
Eolus Vind and Minesto AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eolus Vind and Minesto AB
The main advantage of trading using opposite Eolus Vind and Minesto AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eolus Vind position performs unexpectedly, Minesto 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 Minesto AB will offset losses from the drop in Minesto AB's long position.| Eolus Vind vs. Lifco AB | Eolus Vind vs. Sdiptech AB | Eolus Vind vs. Vitec Software Group | Eolus Vind vs. Addtech AB |
| Minesto AB vs. SolTech Energy Sweden | Minesto AB vs. Eolus Vind AB | Minesto AB vs. Climeon AB | Minesto AB vs. Powercell Sweden |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |