Correlation Between Rana Gruber and Integrated Wind
Can any of the company-specific risk be diversified away by investing in both Rana Gruber and Integrated Wind 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 Rana Gruber and Integrated Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rana Gruber AS and Integrated Wind Solutions, you can compare the effects of market volatilities on Rana Gruber and Integrated Wind 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 Rana Gruber with a short position of Integrated Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rana Gruber and Integrated Wind.
Diversification Opportunities for Rana Gruber and Integrated Wind
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rana and Integrated is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rana Gruber AS and Integrated Wind Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Wind Solutions and Rana Gruber 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 Rana Gruber AS are associated (or correlated) with Integrated Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Wind Solutions has no effect on the direction of Rana Gruber i.e., Rana Gruber and Integrated Wind go up and down completely randomly.
Pair Corralation between Rana Gruber and Integrated Wind
Assuming the 90 days trading horizon Rana Gruber is expected to generate 1.64 times less return on investment than Integrated Wind. But when comparing it to its historical volatility, Rana Gruber AS is 2.37 times less risky than Integrated Wind. It trades about 0.02 of its potential returns per unit of risk. Integrated Wind Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Integrated Wind Solutions on August 29, 2024 and sell it today you would lose (120.00) from holding Integrated Wind Solutions or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rana Gruber AS vs. Integrated Wind Solutions
Performance |
| Timeline |
| Rana Gruber AS |
| Integrated Wind Solutions |
Rana Gruber and Integrated Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rana Gruber and Integrated Wind
The main advantage of trading using opposite Rana Gruber and Integrated Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rana Gruber position performs unexpectedly, Integrated Wind 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 Integrated Wind will offset losses from the drop in Integrated Wind's long position.| Rana Gruber vs. Green Minerals AS | Rana Gruber vs. Elkem ASA | Rana Gruber vs. Integrated Wind Solutions | Rana Gruber vs. Vow ASA |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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