Correlation Between Investor and HAKI Safety
Can any of the company-specific risk be diversified away by investing in both Investor and HAKI Safety 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 HAKI Safety 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 HAKI Safety A, you can compare the effects of market volatilities on Investor and HAKI Safety 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 HAKI Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor and HAKI Safety.
Diversification Opportunities for Investor and HAKI Safety
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investor and HAKI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Investor AB ser and HAKI Safety A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKI Safety A 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 HAKI Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKI Safety A has no effect on the direction of Investor i.e., Investor and HAKI Safety go up and down completely randomly.
Pair Corralation between Investor and HAKI Safety
Assuming the 90 days trading horizon Investor AB ser is expected to generate 0.17 times more return on investment than HAKI Safety. However, Investor AB ser is 6.0 times less risky than HAKI Safety. It trades about 0.01 of its potential returns per unit of risk. HAKI Safety A is currently generating about -0.01 per unit of risk. If you would invest 30,266 in Investor AB ser on September 4, 2024 and sell it today you would earn a total of 54.00 from holding Investor AB ser or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Investor AB ser vs. HAKI Safety A
Performance |
| Timeline |
| Investor AB ser |
| HAKI Safety A |
Investor and HAKI Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor and HAKI Safety
The main advantage of trading using opposite Investor and HAKI Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor position performs unexpectedly, HAKI Safety 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 HAKI Safety will offset losses from the drop in HAKI Safety's long position.| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
| HAKI Safety vs. Scandinavian ChemoTech AB | HAKI Safety vs. Beowulf Mining PLC | HAKI Safety vs. SaltX Technology Holding | HAKI Safety vs. Raketech Group Holding |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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