Correlation Between Impact Coatings and Cortus Energy
Can any of the company-specific risk be diversified away by investing in both Impact Coatings and Cortus Energy 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 Impact Coatings and Cortus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impact Coatings publ and Cortus Energy AB, you can compare the effects of market volatilities on Impact Coatings and Cortus Energy 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 Impact Coatings with a short position of Cortus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impact Coatings and Cortus Energy.
Diversification Opportunities for Impact Coatings and Cortus Energy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impact and Cortus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Impact Coatings publ and Cortus Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cortus Energy AB and Impact Coatings 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 Impact Coatings publ are associated (or correlated) with Cortus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cortus Energy AB has no effect on the direction of Impact Coatings i.e., Impact Coatings and Cortus Energy go up and down completely randomly.
Pair Corralation between Impact Coatings and Cortus Energy
Assuming the 90 days trading horizon Impact Coatings publ is expected to generate 0.41 times more return on investment than Cortus Energy. However, Impact Coatings publ is 2.44 times less risky than Cortus Energy. It trades about 0.01 of its potential returns per unit of risk. Cortus Energy AB is currently generating about -0.05 per unit of risk. If you would invest 540.00 in Impact Coatings publ on September 1, 2024 and sell it today you would lose (111.00) from holding Impact Coatings publ or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impact Coatings publ vs. Cortus Energy AB
Performance |
| Timeline |
| Impact Coatings publ |
| Cortus Energy AB |
Impact Coatings and Cortus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impact Coatings and Cortus Energy
The main advantage of trading using opposite Impact Coatings and Cortus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impact Coatings position performs unexpectedly, Cortus Energy 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 Cortus Energy will offset losses from the drop in Cortus Energy's long position.| Impact Coatings vs. Powercell Sweden | Impact Coatings vs. Teco 2030 Asa | Impact Coatings vs. Hexagon Purus As | Impact Coatings vs. Minesto AB |
| Cortus Energy vs. SolTech Energy Sweden | Cortus Energy vs. Minesto AB | Cortus Energy vs. SaltX Technology Holding | Cortus Energy vs. Impact Coatings publ |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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