Correlation Between Penneo AS and Impero AS
Can any of the company-specific risk be diversified away by investing in both Penneo AS and Impero 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 Penneo AS and Impero AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penneo AS and Impero AS, you can compare the effects of market volatilities on Penneo AS and Impero 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 Penneo AS with a short position of Impero AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and Impero AS.
Diversification Opportunities for Penneo AS and Impero AS
Very weak diversification
The 3 months correlation between Penneo and Impero is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and Impero AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impero AS and Penneo AS 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 Penneo AS are associated (or correlated) with Impero AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impero AS has no effect on the direction of Penneo AS i.e., Penneo AS and Impero AS go up and down completely randomly.
Pair Corralation between Penneo AS and Impero AS
Assuming the 90 days trading horizon Penneo AS is expected to generate 3.83 times less return on investment than Impero AS. But when comparing it to its historical volatility, Penneo AS is 11.65 times less risky than Impero AS. It trades about 0.14 of its potential returns per unit of risk. Impero AS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Impero AS on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Impero AS or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penneo AS vs. Impero AS
Performance |
| Timeline |
| Penneo AS |
| Impero AS |
Penneo AS and Impero AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and Impero AS
The main advantage of trading using opposite Penneo AS and Impero AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, Impero 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 Impero AS will offset losses from the drop in Impero AS's long position.| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
| Impero AS vs. Penneo AS | Impero AS vs. Hydract AS | Impero AS vs. Shape Robotics AS | Impero AS vs. Dataproces Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |