Correlation Between Rolling Optics and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Rolling Optics and Zwipe 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 Rolling Optics and Zwipe AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rolling Optics Holding and Zwipe AS, you can compare the effects of market volatilities on Rolling Optics and Zwipe 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 Rolling Optics with a short position of Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rolling Optics and Zwipe AS.
Diversification Opportunities for Rolling Optics and Zwipe AS
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rolling and Zwipe is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Rolling Optics Holding and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS and Rolling Optics 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 Rolling Optics Holding are associated (or correlated) with Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Rolling Optics i.e., Rolling Optics and Zwipe AS go up and down completely randomly.
Pair Corralation between Rolling Optics and Zwipe AS
Assuming the 90 days horizon Rolling Optics Holding is expected to generate 0.63 times more return on investment than Zwipe AS. However, Rolling Optics Holding is 1.59 times less risky than Zwipe AS. It trades about -0.01 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.29 per unit of risk. If you would invest 70.00 in Rolling Optics Holding on September 1, 2024 and sell it today you would lose (2.00) from holding Rolling Optics Holding or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rolling Optics Holding vs. Zwipe AS
Performance |
| Timeline |
| Rolling Optics Holding |
| Zwipe AS |
Rolling Optics and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rolling Optics and Zwipe AS
The main advantage of trading using opposite Rolling Optics and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rolling Optics position performs unexpectedly, Zwipe 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 Zwipe AS will offset losses from the drop in Zwipe AS's long position.| Rolling Optics vs. Zwipe AS | Rolling Optics vs. Zaplox AB | Rolling Optics vs. XMReality AB | Rolling Optics vs. Ratos AB |
| Zwipe AS vs. Upsales Technology AB | Zwipe AS vs. Nordic Asia Investment | Zwipe AS vs. Filo Mining Corp | Zwipe AS vs. Indutrade 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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