Correlation Between Integrated Wind and Pexip Holding
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Pexip Holding 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 Pexip Holding 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 Pexip Holding ASA, you can compare the effects of market volatilities on Integrated Wind and Pexip Holding 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 Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Pexip Holding.
Diversification Opportunities for Integrated Wind and Pexip Holding
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Pexip is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding 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 Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of Integrated Wind i.e., Integrated Wind and Pexip Holding go up and down completely randomly.
Pair Corralation between Integrated Wind and Pexip Holding
Assuming the 90 days trading horizon Integrated Wind is expected to generate 8.89 times less return on investment than Pexip Holding. In addition to that, Integrated Wind is 1.68 times more volatile than Pexip Holding ASA. It trades about 0.01 of its total potential returns per unit of risk. Pexip Holding ASA is currently generating about 0.16 per unit of volatility. If you would invest 3,030 in Pexip Holding ASA on September 1, 2024 and sell it today you would earn a total of 1,485 from holding Pexip Holding ASA or generate 49.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Pexip Holding ASA
Performance |
| Timeline |
| Integrated Wind Solutions |
| Pexip Holding ASA |
Integrated Wind and Pexip Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Pexip Holding
The main advantage of trading using opposite Integrated Wind and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Pexip Holding 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 Pexip Holding will offset losses from the drop in Pexip Holding'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 |
| Pexip Holding vs. Elliptic Laboratories AS | Pexip Holding vs. Huddlestock Fintech As | Pexip Holding vs. Elkem ASA | Pexip Holding vs. Integrated Wind Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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