Correlation Between Indutrade and ChargePanel
Can any of the company-specific risk be diversified away by investing in both Indutrade and ChargePanel 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 Indutrade and ChargePanel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indutrade AB and ChargePanel AB, you can compare the effects of market volatilities on Indutrade and ChargePanel 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 Indutrade with a short position of ChargePanel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indutrade and ChargePanel.
Diversification Opportunities for Indutrade and ChargePanel
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indutrade and ChargePanel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Indutrade AB and ChargePanel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePanel AB and Indutrade 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 Indutrade AB are associated (or correlated) with ChargePanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePanel AB has no effect on the direction of Indutrade i.e., Indutrade and ChargePanel go up and down completely randomly.
Pair Corralation between Indutrade and ChargePanel
Assuming the 90 days trading horizon Indutrade AB is expected to generate 0.37 times more return on investment than ChargePanel. However, Indutrade AB is 2.72 times less risky than ChargePanel. It trades about 0.06 of its potential returns per unit of risk. ChargePanel AB is currently generating about -0.04 per unit of risk. If you would invest 28,600 in Indutrade AB on December 1, 2024 and sell it today you would earn a total of 1,980 from holding Indutrade AB or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.77% |
| Values | Daily Returns |
Indutrade AB vs. ChargePanel AB
Performance |
| Timeline |
| Indutrade AB |
| ChargePanel AB |
Indutrade and ChargePanel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indutrade and ChargePanel
The main advantage of trading using opposite Indutrade and ChargePanel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indutrade position performs unexpectedly, ChargePanel 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 ChargePanel will offset losses from the drop in ChargePanel's long position.| Indutrade vs. Lifco AB | Indutrade vs. Addtech AB | Indutrade vs. NIBE Industrier AB | Indutrade vs. Investment AB Latour |
| ChargePanel vs. Redsense Medical AB | ChargePanel vs. Swedbank AB | ChargePanel vs. Vitec Software Group | ChargePanel vs. Maven Wireless Sweden |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |