Correlation Between Integrated Wind and Bonheur
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Bonheur 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 Bonheur 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 Bonheur, you can compare the effects of market volatilities on Integrated Wind and Bonheur 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 Bonheur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Bonheur.
Diversification Opportunities for Integrated Wind and Bonheur
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integrated and Bonheur is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Bonheur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonheur 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 Bonheur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonheur has no effect on the direction of Integrated Wind i.e., Integrated Wind and Bonheur go up and down completely randomly.
Pair Corralation between Integrated Wind and Bonheur
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the Bonheur. In addition to that, Integrated Wind is 1.42 times more volatile than Bonheur. It trades about -0.2 of its total potential returns per unit of risk. Bonheur is currently generating about 0.01 per unit of volatility. If you would invest 26,650 in Bonheur on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Bonheur or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Bonheur
Performance |
| Timeline |
| Integrated Wind Solutions |
| Bonheur |
Integrated Wind and Bonheur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Bonheur
The main advantage of trading using opposite Integrated Wind and Bonheur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Bonheur 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 Bonheur will offset losses from the drop in Bonheur'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 |
| Bonheur vs. Cloudberry Clean Energy | Bonheur vs. Aker ASA | Bonheur vs. Scatec Solar OL | Bonheur vs. Borregaard 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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