Correlation Between Eolus Vind and NOTE AB
Can any of the company-specific risk be diversified away by investing in both Eolus Vind and NOTE 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 NOTE 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 NOTE AB, you can compare the effects of market volatilities on Eolus Vind and NOTE 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 NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eolus Vind and NOTE AB.
Diversification Opportunities for Eolus Vind and NOTE AB
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eolus and NOTE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eolus Vind AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE 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 NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Eolus Vind i.e., Eolus Vind and NOTE AB go up and down completely randomly.
Pair Corralation between Eolus Vind and NOTE AB
Assuming the 90 days trading horizon Eolus Vind AB is expected to under-perform the NOTE AB. In addition to that, Eolus Vind is 1.19 times more volatile than NOTE AB. It trades about -0.1 of its total potential returns per unit of risk. NOTE AB is currently generating about 0.15 per unit of volatility. If you would invest 11,380 in NOTE AB on August 31, 2024 and sell it today you would earn a total of 1,610 from holding NOTE AB or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eolus Vind AB vs. NOTE AB
Performance |
| Timeline |
| Eolus Vind AB |
| NOTE AB |
Eolus Vind and NOTE AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eolus Vind and NOTE AB
The main advantage of trading using opposite Eolus Vind and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eolus Vind position performs unexpectedly, NOTE 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 NOTE AB will offset losses from the drop in NOTE AB's long position.| Eolus Vind vs. NOTE AB | Eolus Vind vs. Zaptec AS | Eolus Vind vs. SolTech Energy Sweden | Eolus Vind vs. Scatec Solar OL |
| NOTE AB vs. Nordea Bank Abp | NOTE AB vs. Qleanair Holding AB | NOTE AB vs. Train Alliance Sweden | NOTE AB vs. SaveLend 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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