Correlation Between Havsfrun Investment and XANO Industri
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and XANO Industri 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 XANO Industri 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 XANO Industri AB, you can compare the effects of market volatilities on Havsfrun Investment and XANO Industri 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 XANO Industri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and XANO Industri.
Diversification Opportunities for Havsfrun Investment and XANO Industri
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Havsfrun and XANO is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and XANO Industri AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XANO Industri 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 XANO Industri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XANO Industri AB has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and XANO Industri go up and down completely randomly.
Pair Corralation between Havsfrun Investment and XANO Industri
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 1.02 times more return on investment than XANO Industri. However, Havsfrun Investment is 1.02 times more volatile than XANO Industri AB. It trades about 0.08 of its potential returns per unit of risk. XANO Industri AB is currently generating about -0.15 per unit of risk. If you would invest 1,085 in Havsfrun Investment AB on September 2, 2024 and sell it today you would earn a total of 135.00 from holding Havsfrun Investment AB or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. XANO Industri AB
Performance |
| Timeline |
| Havsfrun Investment |
| XANO Industri AB |
Havsfrun Investment and XANO Industri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and XANO Industri
The main advantage of trading using opposite Havsfrun Investment and XANO Industri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, XANO Industri 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 XANO Industri will offset losses from the drop in XANO Industri'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 |
| XANO Industri vs. Addtech AB | XANO Industri vs. Indutrade AB | XANO Industri vs. Lifco AB | XANO Industri vs. NIBE Industrier 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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