Correlation Between Kinnevik Investment and Beowulf Mining
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By analyzing existing cross correlation between Kinnevik Investment AB and Beowulf Mining PLC, you can compare the effects of market volatilities on Kinnevik Investment and Beowulf Mining 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 Kinnevik Investment with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Beowulf Mining.
Diversification Opportunities for Kinnevik Investment and Beowulf Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kinnevik and Beowulf is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Beowulf Mining go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Beowulf Mining
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Beowulf Mining. But the stock apears to be less risky and, when comparing its historical volatility, Kinnevik Investment AB is 23.9 times less risky than Beowulf Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Beowulf Mining PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Beowulf Mining PLC on August 26, 2024 and sell it today you would earn a total of 210.00 from holding Beowulf Mining PLC or generate 1050.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Beowulf Mining PLC
Performance |
| Timeline |
| Kinnevik Investment |
| Beowulf Mining PLC |
Kinnevik Investment and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Beowulf Mining
The main advantage of trading using opposite Kinnevik Investment and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Kinnevik Investment vs. Norva24 Group AB | Kinnevik Investment vs. KABE Group AB | Kinnevik Investment vs. IAR Systems Group | Kinnevik Investment vs. Clinical Laserthermia Systems |
| Beowulf Mining vs. Lohilo Foods AB | Beowulf Mining vs. Raketech Group Holding | Beowulf Mining vs. Avanza Bank Holding | Beowulf Mining vs. Maven Wireless Sweden |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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