Correlation Between Ratos AB and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Ratos AB 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 Ratos AB and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratos AB and Kinnevik Investment AB, you can compare the effects of market volatilities on Ratos AB 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 Ratos AB with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratos AB and Kinnevik Investment.
Diversification Opportunities for Ratos AB and Kinnevik Investment
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ratos and Kinnevik is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ratos AB and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Ratos AB 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 Ratos AB 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 Ratos AB i.e., Ratos AB and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Ratos AB and Kinnevik Investment
Assuming the 90 days trading horizon Ratos AB is expected to under-perform the Kinnevik Investment. But the stock apears to be less risky and, when comparing its historical volatility, Ratos AB is 1.29 times less risky than Kinnevik Investment. The stock trades about -0.07 of its potential returns per unit of risk. The Kinnevik Investment AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 7,344 in Kinnevik Investment AB on September 13, 2024 and sell it today you would earn a total of 635.00 from holding Kinnevik Investment AB or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratos AB vs. Kinnevik Investment AB
Performance |
| Timeline |
| Ratos AB |
| Kinnevik Investment |
Ratos AB and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratos AB and Kinnevik Investment
The main advantage of trading using opposite Ratos AB and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratos AB 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.| Ratos AB vs. Catella AB | Ratos AB vs. Catella AB A | Ratos AB vs. KABE Group AB | Ratos AB vs. IAR Systems Group |
| Kinnevik Investment vs. Catella AB | Kinnevik Investment vs. Catella AB A | Kinnevik Investment vs. KABE Group AB | Kinnevik Investment vs. IAR Systems Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |