Correlation Between Havsfrun Investment and ChargePanel
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and ChargePanel 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 Havsfrun Investment and ChargePanel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and ChargePanel AB, you can compare the effects of market volatilities on Havsfrun Investment and ChargePanel 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 Havsfrun Investment with a short position of ChargePanel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and ChargePanel.
Diversification Opportunities for Havsfrun Investment and ChargePanel
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Havsfrun and ChargePanel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and ChargePanel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePanel AB and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with ChargePanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePanel AB has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and ChargePanel go up and down completely randomly.
Pair Corralation between Havsfrun Investment and ChargePanel
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 1.84 times more return on investment than ChargePanel. However, Havsfrun Investment is 1.84 times more volatile than ChargePanel AB. It trades about 0.02 of its potential returns per unit of risk. ChargePanel AB is currently generating about -0.36 per unit of risk. If you would invest 1,220 in Havsfrun Investment AB on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Havsfrun Investment AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. ChargePanel AB
Performance |
| Timeline |
| Havsfrun Investment |
| ChargePanel AB |
Havsfrun Investment and ChargePanel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and ChargePanel
The main advantage of trading using opposite Havsfrun Investment and ChargePanel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, ChargePanel 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 ChargePanel will offset losses from the drop in ChargePanel's long position.| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
| ChargePanel vs. Bio Works Technologies AB | ChargePanel vs. SolTech Energy Sweden | ChargePanel vs. Zenicor Medical Systems | ChargePanel vs. Maven Wireless 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 Stocks Directory module to find actively traded stocks across global markets.
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