Correlation Between Investment and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Investment and Kinnevik Investment 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 Investment and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Investment and Kinnevik Investment AB, you can compare the effects of market volatilities on Investment and Kinnevik Investment 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 Investment with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Kinnevik Investment.
Diversification Opportunities for Investment and Kinnevik Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investment and Kinnevik is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Investment and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Investment 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 The Investment are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Investment i.e., Investment and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Investment and Kinnevik Investment
Assuming the 90 days trading horizon The Investment is expected to generate 0.09 times more return on investment than Kinnevik Investment. However, The Investment is 10.63 times less risky than Kinnevik Investment. It trades about -0.13 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.06 per unit of risk. If you would invest 37,800 in The Investment on August 29, 2024 and sell it today you would lose (200.00) from holding The Investment or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment vs. Kinnevik Investment AB
Performance |
| Timeline |
| Investment |
| Kinnevik Investment |
Investment and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Kinnevik Investment
The main advantage of trading using opposite Investment and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Investment vs. Lendinvest PLC | Investment vs. Neometals | Investment vs. Albion Technology General | Investment vs. Jupiter Fund Management |
| Kinnevik Investment vs. Lendinvest PLC | Kinnevik Investment vs. Neometals | Kinnevik Investment vs. Albion Technology General | Kinnevik Investment vs. Jupiter Fund Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |