Correlation Between Integrated Wind and Medistim ASA
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Medistim ASA 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 Medistim ASA 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 Medistim ASA, you can compare the effects of market volatilities on Integrated Wind and Medistim ASA 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 Medistim ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Medistim ASA.
Diversification Opportunities for Integrated Wind and Medistim ASA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integrated and Medistim is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Medistim ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medistim ASA 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 Medistim ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medistim ASA has no effect on the direction of Integrated Wind i.e., Integrated Wind and Medistim ASA go up and down completely randomly.
Pair Corralation between Integrated Wind and Medistim ASA
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the Medistim ASA. But the stock apears to be less risky and, when comparing its historical volatility, Integrated Wind Solutions is 1.93 times less risky than Medistim ASA. The stock trades about -0.08 of its potential returns per unit of risk. The Medistim ASA is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 15,850 in Medistim ASA on September 2, 2024 and sell it today you would lose (650.00) from holding Medistim ASA or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Medistim ASA
Performance |
| Timeline |
| Integrated Wind Solutions |
| Medistim ASA |
Integrated Wind and Medistim ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Medistim ASA
The main advantage of trading using opposite Integrated Wind and Medistim ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Medistim ASA 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 Medistim ASA will offset losses from the drop in Medistim ASA'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 |
| Medistim ASA vs. Kitron ASA | Medistim ASA vs. Photocure | Medistim ASA vs. AF Gruppen ASA | Medistim ASA 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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