Correlation Between Inwido AB and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Inwido AB and Clinical Laserthermia 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 Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Inwido AB and Clinical Laserthermia 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 Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and Clinical Laserthermia.
Diversification Opportunities for Inwido AB and Clinical Laserthermia
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inwido and Clinical is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia 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 Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Inwido AB i.e., Inwido AB and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Inwido AB and Clinical Laserthermia
Assuming the 90 days trading horizon Inwido AB is expected to generate 0.16 times more return on investment than Clinical Laserthermia. However, Inwido AB is 6.31 times less risky than Clinical Laserthermia. It trades about -0.06 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.08 per unit of risk. If you would invest 18,870 in Inwido AB on August 26, 2024 and sell it today you would lose (310.00) from holding Inwido AB or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inwido AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Inwido AB |
| Clinical Laserthermia |
Inwido AB and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and Clinical Laserthermia
The main advantage of trading using opposite Inwido AB and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Inwido AB vs. Havsfrun Investment AB | Inwido AB vs. FormPipe Software AB | Inwido AB vs. Vitec Software Group | Inwido AB vs. Kinnevik Investment AB |
| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. SpectraCure AB | Clinical Laserthermia vs. Senzime 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 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
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |