Correlation Between Investor and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Investor and Attendo AB 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 Investor and Attendo AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investor AB ser and Attendo AB, you can compare the effects of market volatilities on Investor and Attendo AB 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 Investor with a short position of Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor and Attendo AB.
Diversification Opportunities for Investor and Attendo AB
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investor and Attendo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Investor AB ser and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB and Investor 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 Investor AB ser are associated (or correlated) with Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Investor i.e., Investor and Attendo AB go up and down completely randomly.
Pair Corralation between Investor and Attendo AB
Assuming the 90 days trading horizon Investor AB ser is expected to under-perform the Attendo AB. But the stock apears to be less risky and, when comparing its historical volatility, Investor AB ser is 1.1 times less risky than Attendo AB. The stock trades about -0.19 of its potential returns per unit of risk. The Attendo AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,820 in Attendo AB on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Attendo AB or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investor AB ser vs. Attendo AB
Performance |
| Timeline |
| Investor AB ser |
| Attendo AB |
Investor and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor and Attendo AB
The main advantage of trading using opposite Investor and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor position performs unexpectedly, Attendo AB 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 Attendo AB will offset losses from the drop in Attendo AB's long position.| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |