Correlation Between Integrated Wind and Zaptec AS
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Zaptec AS 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 Zaptec AS 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 Zaptec AS, you can compare the effects of market volatilities on Integrated Wind and Zaptec AS 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 Zaptec AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Zaptec AS.
Diversification Opportunities for Integrated Wind and Zaptec AS
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integrated and Zaptec is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Zaptec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaptec 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 Zaptec AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaptec AS has no effect on the direction of Integrated Wind i.e., Integrated Wind and Zaptec AS go up and down completely randomly.
Pair Corralation between Integrated Wind and Zaptec AS
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the Zaptec AS. But the stock apears to be less risky and, when comparing its historical volatility, Integrated Wind Solutions is 1.38 times less risky than Zaptec AS. The stock trades about -0.21 of its potential returns per unit of risk. The Zaptec AS is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Zaptec AS on November 9, 2024 and sell it today you would earn a total of 347.00 from holding Zaptec AS or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Zaptec AS
Performance |
| Timeline |
| Integrated Wind Solutions |
| Zaptec AS |
Integrated Wind and Zaptec AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Zaptec AS
The main advantage of trading using opposite Integrated Wind and Zaptec AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Zaptec AS 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 Zaptec AS will offset losses from the drop in Zaptec AS'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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