Correlation Between Integrated Wind and Axactor SE
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Axactor SE 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 Integrated Wind and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Wind Solutions and Axactor SE, you can compare the effects of market volatilities on Integrated Wind and Axactor SE 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 Integrated Wind with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Axactor SE.
Diversification Opportunities for Integrated Wind and Axactor SE
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Integrated and Axactor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Integrated Wind 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 Integrated Wind Solutions are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Integrated Wind i.e., Integrated Wind and Axactor SE go up and down completely randomly.
Pair Corralation between Integrated Wind and Axactor SE
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the Axactor SE. In addition to that, Integrated Wind is 1.13 times more volatile than Axactor SE. It trades about -0.08 of its total potential returns per unit of risk. Axactor SE is currently generating about 0.31 per unit of volatility. If you would invest 386.00 in Axactor SE on November 29, 2024 and sell it today you would earn a total of 74.00 from holding Axactor SE or generate 19.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Axactor SE
Performance |
| Timeline |
| Integrated Wind Solutions |
| Axactor SE |
Integrated Wind and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Axactor SE
The main advantage of trading using opposite Integrated Wind and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo AS |
| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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