Correlation Between Inwido AB and Tellusgruppen
Can any of the company-specific risk be diversified away by investing in both Inwido AB and Tellusgruppen 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 Tellusgruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and Tellusgruppen AB, you can compare the effects of market volatilities on Inwido AB and Tellusgruppen 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 Tellusgruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and Tellusgruppen.
Diversification Opportunities for Inwido AB and Tellusgruppen
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inwido and Tellusgruppen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and Tellusgruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellusgruppen 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 Tellusgruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellusgruppen AB has no effect on the direction of Inwido AB i.e., Inwido AB and Tellusgruppen go up and down completely randomly.
Pair Corralation between Inwido AB and Tellusgruppen
Assuming the 90 days trading horizon Inwido AB is expected to under-perform the Tellusgruppen. But the stock apears to be less risky and, when comparing its historical volatility, Inwido AB is 2.12 times less risky than Tellusgruppen. The stock trades about -0.25 of its potential returns per unit of risk. The Tellusgruppen AB is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Tellusgruppen AB on August 31, 2024 and sell it today you would lose (45.00) from holding Tellusgruppen AB or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Inwido AB vs. Tellusgruppen AB
Performance |
| Timeline |
| Inwido AB |
| Tellusgruppen AB |
Inwido AB and Tellusgruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inwido AB and Tellusgruppen
The main advantage of trading using opposite Inwido AB and Tellusgruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB position performs unexpectedly, Tellusgruppen 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 Tellusgruppen will offset losses from the drop in Tellusgruppen's long position.| Inwido AB vs. Scandinavian ChemoTech AB | Inwido AB vs. Addtech AB | Inwido AB vs. Sdiptech AB | Inwido AB vs. G5 Entertainment publ |
| Tellusgruppen vs. Inwido AB | Tellusgruppen vs. Dometic Group AB | Tellusgruppen vs. Byggmax Group AB | Tellusgruppen vs. Bravida Holding 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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