Correlation Between Integrated Wind and Helgeland Sparebank
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Helgeland 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 Helgeland 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 Helgeland Sparebank, you can compare the effects of market volatilities on Integrated Wind and Helgeland 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 Helgeland Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Helgeland Sparebank.
Diversification Opportunities for Integrated Wind and Helgeland Sparebank
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integrated and Helgeland is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Helgeland Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helgeland 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 Helgeland Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helgeland Sparebank has no effect on the direction of Integrated Wind i.e., Integrated Wind and Helgeland Sparebank go up and down completely randomly.
Pair Corralation between Integrated Wind and Helgeland Sparebank
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to generate 1.24 times more return on investment than Helgeland Sparebank. However, Integrated Wind is 1.24 times more volatile than Helgeland Sparebank. It trades about -0.03 of its potential returns per unit of risk. Helgeland Sparebank is currently generating about -0.07 per unit of risk. If you would invest 4,940 in Integrated Wind Solutions on September 5, 2024 and sell it today you would lose (60.00) from holding Integrated Wind Solutions or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Helgeland Sparebank
Performance |
| Timeline |
| Integrated Wind Solutions |
| Helgeland Sparebank |
Integrated Wind and Helgeland Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Helgeland Sparebank
The main advantage of trading using opposite Integrated Wind and Helgeland Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Helgeland 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 Helgeland Sparebank will offset losses from the drop in Helgeland Sparebank's long position.| Integrated Wind vs. Bonheur | Integrated Wind vs. Aker Carbon Capture | Integrated Wind vs. Cadeler As | Integrated Wind vs. Magnora ASA |
| Helgeland Sparebank vs. Holand og Setskog | Helgeland Sparebank vs. Elkem ASA | Helgeland Sparebank vs. Integrated Wind Solutions | Helgeland Sparebank vs. Vow 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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