Correlation Between ITAB Shop and Elanders
Can any of the company-specific risk be diversified away by investing in both ITAB Shop and Elanders 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 ITAB Shop and Elanders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITAB Shop Concept and Elanders AB, you can compare the effects of market volatilities on ITAB Shop and Elanders 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 ITAB Shop with a short position of Elanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITAB Shop and Elanders.
Diversification Opportunities for ITAB Shop and Elanders
Good diversification
The 3 months correlation between ITAB and Elanders is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ITAB Shop Concept and Elanders AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elanders AB and ITAB Shop 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 ITAB Shop Concept are associated (or correlated) with Elanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elanders AB has no effect on the direction of ITAB Shop i.e., ITAB Shop and Elanders go up and down completely randomly.
Pair Corralation between ITAB Shop and Elanders
Assuming the 90 days trading horizon ITAB Shop Concept is expected to under-perform the Elanders. In addition to that, ITAB Shop is 1.32 times more volatile than Elanders AB. It trades about -0.29 of its total potential returns per unit of risk. Elanders AB is currently generating about -0.2 per unit of volatility. If you would invest 9,720 in Elanders AB on September 1, 2024 and sell it today you would lose (680.00) from holding Elanders AB or give up 7.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITAB Shop Concept vs. Elanders AB
Performance |
| Timeline |
| ITAB Shop Concept |
| Elanders AB |
ITAB Shop and Elanders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITAB Shop and Elanders
The main advantage of trading using opposite ITAB Shop and Elanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITAB Shop position performs unexpectedly, Elanders 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 Elanders will offset losses from the drop in Elanders' long position.| ITAB Shop vs. Inwido AB | ITAB Shop vs. Elanders AB | ITAB Shop vs. Byggmax Group AB | ITAB Shop vs. Dustin Group AB |
| Elanders vs. Inwido AB | Elanders vs. New Wave Group | Elanders vs. Lindab International AB | Elanders vs. Fagerhult 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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