Correlation Between Resurs Holding and Cloetta AB
Can any of the company-specific risk be diversified away by investing in both Resurs Holding and Cloetta AB 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 Resurs Holding and Cloetta AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resurs Holding AB and Cloetta AB, you can compare the effects of market volatilities on Resurs Holding and Cloetta AB 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 Resurs Holding with a short position of Cloetta AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resurs Holding and Cloetta AB.
Diversification Opportunities for Resurs Holding and Cloetta AB
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Resurs and Cloetta is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Resurs Holding AB and Cloetta AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloetta AB and Resurs Holding 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 Resurs Holding AB are associated (or correlated) with Cloetta AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloetta AB has no effect on the direction of Resurs Holding i.e., Resurs Holding and Cloetta AB go up and down completely randomly.
Pair Corralation between Resurs Holding and Cloetta AB
If you would invest 2,350 in Resurs Holding AB on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Resurs Holding AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Resurs Holding AB vs. Cloetta AB
Performance |
| Timeline |
| Resurs Holding AB |
| Cloetta AB |
Resurs Holding and Cloetta AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resurs Holding and Cloetta AB
The main advantage of trading using opposite Resurs Holding and Cloetta AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resurs Holding position performs unexpectedly, Cloetta AB 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 Cloetta AB will offset losses from the drop in Cloetta AB's long position.| Resurs Holding vs. Intrum Justitia AB | Resurs Holding vs. Tele2 AB | Resurs Holding vs. Telia Company AB | Resurs Holding vs. Axfood AB |
| Cloetta AB vs. Securitas AB | Cloetta AB vs. Clas Ohlson AB | Cloetta AB vs. Axfood AB | Cloetta AB vs. Byggmax Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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