Correlation Between Integrated Wind and Hexagon Purus
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Hexagon Purus 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 Hexagon Purus 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 Hexagon Purus As, you can compare the effects of market volatilities on Integrated Wind and Hexagon Purus 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 Hexagon Purus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Hexagon Purus.
Diversification Opportunities for Integrated Wind and Hexagon Purus
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integrated and Hexagon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Hexagon Purus As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Purus As 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 Hexagon Purus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Purus As has no effect on the direction of Integrated Wind i.e., Integrated Wind and Hexagon Purus go up and down completely randomly.
Pair Corralation between Integrated Wind and Hexagon Purus
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to generate 0.76 times more return on investment than Hexagon Purus. However, Integrated Wind Solutions is 1.32 times less risky than Hexagon Purus. It trades about 0.04 of its potential returns per unit of risk. Hexagon Purus As is currently generating about -0.05 per unit of risk. If you would invest 3,360 in Integrated Wind Solutions on August 30, 2024 and sell it today you would earn a total of 1,640 from holding Integrated Wind Solutions or generate 48.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Hexagon Purus As
Performance |
| Timeline |
| Integrated Wind Solutions |
| Hexagon Purus As |
Integrated Wind and Hexagon Purus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Hexagon Purus
The main advantage of trading using opposite Integrated Wind and Hexagon Purus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Hexagon Purus 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 Hexagon Purus will offset losses from the drop in Hexagon Purus' long position.| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo AS |
| Hexagon Purus vs. Clean Seas Seafood | Hexagon Purus vs. Xplora Technologies As | Hexagon Purus vs. Arcticzymes Technologies ASA | Hexagon Purus vs. 5Th Planet Games |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |