Correlation Between Havsfrun Investment and I Tech
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and I Tech 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 I Tech 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 I Tech, you can compare the effects of market volatilities on Havsfrun Investment and I Tech 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 I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and I Tech.
Diversification Opportunities for Havsfrun Investment and I Tech
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Havsfrun and ITECH is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech 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 I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and I Tech go up and down completely randomly.
Pair Corralation between Havsfrun Investment and I Tech
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to under-perform the I Tech. But the stock apears to be less risky and, when comparing its historical volatility, Havsfrun Investment AB is 1.05 times less risky than I Tech. The stock trades about -0.02 of its potential returns per unit of risk. The I Tech is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 5,700 in I Tech on November 27, 2024 and sell it today you would earn a total of 2,100 from holding I Tech or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. I Tech
Performance |
| Timeline |
| Havsfrun Investment |
| I Tech |
Havsfrun Investment and I Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and I Tech
The main advantage of trading using opposite Havsfrun Investment and I Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, I Tech 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 I Tech will offset losses from the drop in I Tech's long position.| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
| I Tech vs. Genovis AB | I Tech vs. Bonesupport Holding AB | I Tech vs. Enea AB | I Tech vs. Xvivo Perfusion 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |