Correlation Between Kinnevik Investment and Footway Group
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By analyzing existing cross correlation between Kinnevik Investment AB and Footway Group AB, you can compare the effects of market volatilities on Kinnevik Investment and Footway Group 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 Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Footway Group.
Diversification Opportunities for Kinnevik Investment and Footway Group
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinnevik and Footway is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB 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 Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Footway Group go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Footway Group
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Footway Group. But the stock apears to be less risky and, when comparing its historical volatility, Kinnevik Investment AB is 1.65 times less risky than Footway Group. The stock trades about -0.04 of its potential returns per unit of risk. The Footway Group AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Footway Group AB on September 3, 2024 and sell it today you would lose (780.00) from holding Footway Group AB or give up 21.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Footway Group AB
Performance |
| Timeline |
| Kinnevik Investment |
| Footway Group AB |
Kinnevik Investment and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Footway Group
The main advantage of trading using opposite Kinnevik Investment and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Footway Group 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 Footway Group will offset losses from the drop in Footway Group's long position.| Kinnevik Investment vs. L E Lundbergfretagen | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. Svenska Handelsbanken AB | Kinnevik Investment vs. Investment AB Latour |
| Footway Group vs. Invisio Communications AB | Footway Group vs. Kinnevik Investment AB | Footway Group vs. Arctic Blue Beverages | Footway Group vs. Lohilo Foods AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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