Correlation Between Integrated Wind and Aurskog Sparebank
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Aurskog Sparebank 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 Aurskog Sparebank 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 Aurskog Sparebank, you can compare the effects of market volatilities on Integrated Wind and Aurskog Sparebank 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 Aurskog Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Aurskog Sparebank.
Diversification Opportunities for Integrated Wind and Aurskog Sparebank
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Aurskog is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Aurskog Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurskog Sparebank 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 Aurskog Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurskog Sparebank has no effect on the direction of Integrated Wind i.e., Integrated Wind and Aurskog Sparebank go up and down completely randomly.
Pair Corralation between Integrated Wind and Aurskog Sparebank
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the Aurskog Sparebank. In addition to that, Integrated Wind is 1.79 times more volatile than Aurskog Sparebank. It trades about -0.02 of its total potential returns per unit of risk. Aurskog Sparebank is currently generating about -0.04 per unit of volatility. If you would invest 23,400 in Aurskog Sparebank on September 7, 2024 and sell it today you would lose (205.00) from holding Aurskog Sparebank or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Aurskog Sparebank
Performance |
| Timeline |
| Integrated Wind Solutions |
| Aurskog Sparebank |
Integrated Wind and Aurskog Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Aurskog Sparebank
The main advantage of trading using opposite Integrated Wind and Aurskog Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Aurskog Sparebank 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 Aurskog Sparebank will offset losses from the drop in Aurskog Sparebank'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 |
| Aurskog Sparebank vs. Sparebank 1 Nord Norge | Aurskog Sparebank vs. Sparebanken Vest | Aurskog Sparebank vs. Storebrand ASA | Aurskog Sparebank vs. DnB 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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