Correlation Between Idun Industrier and Humble Group
Can any of the company-specific risk be diversified away by investing in both Idun Industrier and Humble Group 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 Idun Industrier and Humble Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idun Industrier AB and Humble Group AB, you can compare the effects of market volatilities on Idun Industrier and Humble Group 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 Idun Industrier with a short position of Humble Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idun Industrier and Humble Group.
Diversification Opportunities for Idun Industrier and Humble Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Idun and Humble is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Idun Industrier AB and Humble Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humble Group AB and Idun Industrier 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 Idun Industrier AB are associated (or correlated) with Humble Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humble Group AB has no effect on the direction of Idun Industrier i.e., Idun Industrier and Humble Group go up and down completely randomly.
Pair Corralation between Idun Industrier and Humble Group
If you would invest 1,217 in Humble Group AB on October 24, 2024 and sell it today you would lose (1.00) from holding Humble Group AB or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Idun Industrier AB vs. Humble Group AB
Performance |
| Timeline |
| Idun Industrier AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Humble Group AB |
Idun Industrier and Humble Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idun Industrier and Humble Group
The main advantage of trading using opposite Idun Industrier and Humble Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idun Industrier position performs unexpectedly, Humble Group 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 Humble Group will offset losses from the drop in Humble Group's long position.| Idun Industrier vs. USWE Sports AB | Idun Industrier vs. Maven Wireless Sweden | Idun Industrier vs. Online Brands Nordic | Idun Industrier vs. Invisio Communications AB |
| Humble Group vs. Samhllsbyggnadsbolaget i Norden | Humble Group vs. Media and Games | Humble Group vs. Hexatronic Group AB | Humble Group vs. Sinch 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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