Correlation Between Intrum Justitia and Hoist Finance
Can any of the company-specific risk be diversified away by investing in both Intrum Justitia and Hoist Finance 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 Intrum Justitia and Hoist Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrum Justitia AB and Hoist Finance AB, you can compare the effects of market volatilities on Intrum Justitia and Hoist Finance 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 Intrum Justitia with a short position of Hoist Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrum Justitia and Hoist Finance.
Diversification Opportunities for Intrum Justitia and Hoist Finance
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intrum and Hoist is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intrum Justitia AB and Hoist Finance AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoist Finance AB and Intrum Justitia 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 Intrum Justitia AB are associated (or correlated) with Hoist Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoist Finance AB has no effect on the direction of Intrum Justitia i.e., Intrum Justitia and Hoist Finance go up and down completely randomly.
Pair Corralation between Intrum Justitia and Hoist Finance
Assuming the 90 days trading horizon Intrum Justitia AB is expected to under-perform the Hoist Finance. In addition to that, Intrum Justitia is 2.36 times more volatile than Hoist Finance AB. It trades about -0.17 of its total potential returns per unit of risk. Hoist Finance AB is currently generating about -0.12 per unit of volatility. If you would invest 9,760 in Hoist Finance AB on August 30, 2024 and sell it today you would lose (580.00) from holding Hoist Finance AB or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intrum Justitia AB vs. Hoist Finance AB
Performance |
| Timeline |
| Intrum Justitia AB |
| Hoist Finance AB |
Intrum Justitia and Hoist Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrum Justitia and Hoist Finance
The main advantage of trading using opposite Intrum Justitia and Hoist Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrum Justitia position performs unexpectedly, Hoist Finance 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 Hoist Finance will offset losses from the drop in Hoist Finance's long position.| Intrum Justitia vs. Troax Group AB | Intrum Justitia vs. NIBE Industrier AB | Intrum Justitia vs. Hexatronic Group AB | Intrum Justitia vs. Bufab Holding AB |
| Hoist Finance vs. Intrum Justitia AB | Hoist Finance vs. Inwido AB | Hoist Finance vs. Resurs Holding AB | Hoist Finance vs. Cloetta 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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