Correlation Between Maven Wireless and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Kinnevik Investment 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 Maven Wireless and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Kinnevik Investment AB, you can compare the effects of market volatilities on Maven Wireless and Kinnevik Investment 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 Maven Wireless with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Kinnevik Investment.
Diversification Opportunities for Maven Wireless and Kinnevik Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maven and Kinnevik is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Maven Wireless i.e., Maven Wireless and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Maven Wireless and Kinnevik Investment
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 1.13 times more return on investment than Kinnevik Investment. However, Maven Wireless is 1.13 times more volatile than Kinnevik Investment AB. It trades about -0.02 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.04 per unit of risk. If you would invest 1,652 in Maven Wireless Sweden on September 2, 2024 and sell it today you would lose (592.00) from holding Maven Wireless Sweden or give up 35.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Kinnevik Investment AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Kinnevik Investment |
Maven Wireless and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Kinnevik Investment
The main advantage of trading using opposite Maven Wireless and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Maven Wireless vs. Checkin Group AB | Maven Wireless vs. Midsummer AB | Maven Wireless vs. Hexatronic Group AB | Maven Wireless vs. Cint Group AB |
| Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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