Correlation Between Holmen AB and Klabin Sa
Can any of the company-specific risk be diversified away by investing in both Holmen AB and Klabin Sa 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 Holmen AB and Klabin Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holmen AB ADR and Klabin Sa A, you can compare the effects of market volatilities on Holmen AB and Klabin Sa 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 Holmen AB with a short position of Klabin Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmen AB and Klabin Sa.
Diversification Opportunities for Holmen AB and Klabin Sa
Very good diversification
The 3 months correlation between Holmen and Klabin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Holmen AB ADR and Klabin Sa A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klabin Sa A and Holmen AB 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 Holmen AB ADR are associated (or correlated) with Klabin Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klabin Sa A has no effect on the direction of Holmen AB i.e., Holmen AB and Klabin Sa go up and down completely randomly.
Pair Corralation between Holmen AB and Klabin Sa
If you would invest 714.00 in Klabin Sa A on August 29, 2024 and sell it today you would earn a total of 20.00 from holding Klabin Sa A or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmen AB ADR vs. Klabin Sa A
Performance |
| Timeline |
| Holmen AB ADR |
| Klabin Sa A |
Holmen AB and Klabin Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmen AB and Klabin Sa
The main advantage of trading using opposite Holmen AB and Klabin Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmen AB position performs unexpectedly, Klabin Sa 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 Klabin Sa will offset losses from the drop in Klabin Sa's long position.| Holmen AB vs. Mondi PLC ADR | Holmen AB vs. Canfor Pulp Products | Holmen AB vs. Nine Dragons Paper | Holmen AB vs. Sylvamo Corp |
| Klabin Sa vs. Mondi PLC ADR | Klabin Sa vs. Suzano Papel e | Klabin Sa vs. Nine Dragons Paper | Klabin Sa vs. Nine Dragons Paper |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |