Correlation Between Inwido AB and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Inwido AB 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 Inwido AB and Attendo AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and Attendo AB, you can compare the effects of market volatilities on Inwido AB 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 Inwido AB with a short position of Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and Attendo AB.
Diversification Opportunities for Inwido AB and Attendo AB
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inwido and Attendo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB and Inwido AB 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 Inwido AB 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 Inwido AB i.e., Inwido AB and Attendo AB go up and down completely randomly.
Pair Corralation between Inwido AB and Attendo AB
Assuming the 90 days trading horizon Inwido AB is expected to under-perform the Attendo AB. In addition to that, Inwido AB is 1.64 times more volatile than Attendo AB. It trades about -0.03 of its total potential returns per unit of risk. Attendo AB is currently generating about 0.05 per unit of volatility. If you would invest 4,780 in Attendo AB on August 29, 2024 and sell it today you would earn a total of 105.00 from holding Attendo AB or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inwido AB vs. Attendo AB
Performance |
| Timeline |
| Inwido AB |
| Attendo AB |
Inwido AB and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and Attendo AB
The main advantage of trading using opposite Inwido AB and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB 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.| Inwido AB vs. Troax Group AB | Inwido AB vs. NIBE Industrier AB | Inwido AB vs. Hexatronic Group AB | Inwido AB vs. Bufab Holding AB |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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