Correlation Between Inwido AB and PolyPlank Publ
Can any of the company-specific risk be diversified away by investing in both Inwido AB and PolyPlank Publ 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 PolyPlank Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and PolyPlank publ AB, you can compare the effects of market volatilities on Inwido AB and PolyPlank Publ 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 PolyPlank Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and PolyPlank Publ.
Diversification Opportunities for Inwido AB and PolyPlank Publ
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inwido and PolyPlank is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and PolyPlank publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPlank publ 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 PolyPlank Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPlank publ AB has no effect on the direction of Inwido AB i.e., Inwido AB and PolyPlank Publ go up and down completely randomly.
Pair Corralation between Inwido AB and PolyPlank Publ
Assuming the 90 days trading horizon Inwido AB is expected to under-perform the PolyPlank Publ. But the stock apears to be less risky and, when comparing its historical volatility, Inwido AB is 3.92 times less risky than PolyPlank Publ. The stock trades about -0.23 of its potential returns per unit of risk. The PolyPlank publ AB is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3.10 in PolyPlank publ AB on September 1, 2024 and sell it today you would lose (0.20) from holding PolyPlank publ AB or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Inwido AB vs. PolyPlank publ AB
Performance |
| Timeline |
| Inwido AB |
| PolyPlank publ AB |
Inwido AB and PolyPlank Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and PolyPlank Publ
The main advantage of trading using opposite Inwido AB and PolyPlank Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB position performs unexpectedly, PolyPlank Publ 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 PolyPlank Publ will offset losses from the drop in PolyPlank Publ's long position.| Inwido AB vs. Episurf Medical AB | Inwido AB vs. Systemair AB | Inwido AB vs. Media and Games | Inwido AB vs. Lohilo Foods AB |
| PolyPlank Publ vs. Saxlund Group AB | PolyPlank Publ vs. Online Brands Nordic | PolyPlank Publ vs. Organoclick AB | PolyPlank Publ vs. Minesto 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |