Correlation Between Industrivarden and Investor
Can any of the company-specific risk be diversified away by investing in both Industrivarden and Investor 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 Industrivarden and Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrivarden AB ser and Investor AB ser, you can compare the effects of market volatilities on Industrivarden and Investor 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 Industrivarden with a short position of Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrivarden and Investor.
Diversification Opportunities for Industrivarden and Investor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrivarden and Investor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industrivarden AB ser and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser and Industrivarden 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 Industrivarden AB ser are associated (or correlated) with Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of Industrivarden i.e., Industrivarden and Investor go up and down completely randomly.
Pair Corralation between Industrivarden and Investor
If you would invest 19,543 in Investor AB ser on October 21, 2024 and sell it today you would earn a total of 11,747 from holding Investor AB ser or generate 60.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Industrivarden AB ser vs. Investor AB ser
Performance |
| Timeline |
| Industrivarden AB ser |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Investor AB ser |
Industrivarden and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrivarden and Investor
The main advantage of trading using opposite Industrivarden and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrivarden position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor's long position.| Industrivarden vs. L E Lundbergfretagen | Industrivarden vs. Industrivarden AB ser | Industrivarden vs. Svenska Handelsbanken AB | Industrivarden vs. Investment AB Latour |
| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |