Correlation Between Investment and Koggbron
Can any of the company-specific risk be diversified away by investing in both Investment and Koggbron 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 Investment and Koggbron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment AB Oresund and Koggbron, you can compare the effects of market volatilities on Investment and Koggbron 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 Investment with a short position of Koggbron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Koggbron.
Diversification Opportunities for Investment and Koggbron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Koggbron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment AB Oresund and Koggbron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koggbron and 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 Investment AB Oresund are associated (or correlated) with Koggbron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koggbron has no effect on the direction of Investment i.e., Investment and Koggbron go up and down completely randomly.
Pair Corralation between Investment and Koggbron
If you would invest 9,785 in Investment AB Oresund on September 12, 2024 and sell it today you would earn a total of 1,195 from holding Investment AB Oresund or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Investment AB Oresund vs. Koggbron
Performance |
| Timeline |
| Investment AB Oresund |
| Koggbron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Investment and Koggbron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Koggbron
The main advantage of trading using opposite Investment and Koggbron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Koggbron 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 Koggbron will offset losses from the drop in Koggbron's long position.| Investment vs. Bure Equity AB | Investment vs. Creades AB | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
| Koggbron vs. Bio Works Technologies AB | Koggbron vs. Investment AB Oresund | Koggbron vs. Lohilo Foods AB | Koggbron vs. Kinnevik Investment 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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