Correlation Between Havsfrun Investment and CoinShares International
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and CoinShares International 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 CoinShares International 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 CoinShares International, you can compare the effects of market volatilities on Havsfrun Investment and CoinShares International 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 CoinShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and CoinShares International.
Diversification Opportunities for Havsfrun Investment and CoinShares International
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Havsfrun and CoinShares is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International 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 CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and CoinShares International go up and down completely randomly.
Pair Corralation between Havsfrun Investment and CoinShares International
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to under-perform the CoinShares International. But the stock apears to be less risky and, when comparing its historical volatility, Havsfrun Investment AB is 1.6 times less risky than CoinShares International. The stock trades about 0.0 of its potential returns per unit of risk. The CoinShares International is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 5,030 in CoinShares International on September 2, 2024 and sell it today you would earn a total of 3,450 from holding CoinShares International or generate 68.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. CoinShares International
Performance |
| Timeline |
| Havsfrun Investment |
| CoinShares International |
Havsfrun Investment and CoinShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and CoinShares International
The main advantage of trading using opposite Havsfrun Investment and CoinShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, CoinShares International 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 CoinShares International will offset losses from the drop in CoinShares International's long position.| Havsfrun Investment vs. Media and Games | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group | Havsfrun Investment vs. Norva24 Group AB |
| CoinShares International vs. Cint Group AB | CoinShares International vs. Bonesupport Holding AB | CoinShares International vs. Catena Media plc | CoinShares International vs. Hexatronic 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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