Correlation Between Inwido AB and Scandinavian ChemoTech
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By analyzing existing cross correlation between Inwido AB and Scandinavian ChemoTech AB, you can compare the effects of market volatilities on Inwido AB and Scandinavian ChemoTech 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 Scandinavian ChemoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and Scandinavian ChemoTech.
Diversification Opportunities for Inwido AB and Scandinavian ChemoTech
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inwido and Scandinavian is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and Scandinavian ChemoTech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian ChemoTech 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 Scandinavian ChemoTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian ChemoTech has no effect on the direction of Inwido AB i.e., Inwido AB and Scandinavian ChemoTech go up and down completely randomly.
Pair Corralation between Inwido AB and Scandinavian ChemoTech
Assuming the 90 days trading horizon Inwido AB is expected to generate 0.44 times more return on investment than Scandinavian ChemoTech. However, Inwido AB is 2.3 times less risky than Scandinavian ChemoTech. It trades about 0.03 of its potential returns per unit of risk. Scandinavian ChemoTech AB is currently generating about -0.03 per unit of risk. If you would invest 17,880 in Inwido AB on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Inwido AB or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inwido AB vs. Scandinavian ChemoTech AB
Performance |
| Timeline |
| Inwido AB |
| Scandinavian ChemoTech |
Inwido AB and Scandinavian ChemoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and Scandinavian ChemoTech
The main advantage of trading using opposite Inwido AB and Scandinavian ChemoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB position performs unexpectedly, Scandinavian ChemoTech 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 Scandinavian ChemoTech will offset losses from the drop in Scandinavian ChemoTech's long position.| Inwido AB vs. Lohilo Foods AB | Inwido AB vs. FormPipe Software AB | Inwido AB vs. NetJobs Group AB | Inwido AB vs. Kinnevik Investment AB |
| Scandinavian ChemoTech vs. Vicore Pharma Holding | Scandinavian ChemoTech vs. Enorama Pharma AB | Scandinavian ChemoTech vs. Xintela AB | Scandinavian ChemoTech vs. Alzinova 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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