Correlation Between Rottneros and Inwido AB
Can any of the company-specific risk be diversified away by investing in both Rottneros and Inwido 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 Rottneros and Inwido AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rottneros AB and Inwido AB, you can compare the effects of market volatilities on Rottneros and Inwido 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 Rottneros with a short position of Inwido AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rottneros and Inwido AB.
Diversification Opportunities for Rottneros and Inwido AB
Very good diversification
The 3 months correlation between Rottneros and Inwido is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Rottneros AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido AB and Rottneros 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 Rottneros AB are associated (or correlated) with Inwido AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inwido AB has no effect on the direction of Rottneros i.e., Rottneros and Inwido AB go up and down completely randomly.
Pair Corralation between Rottneros and Inwido AB
Assuming the 90 days trading horizon Rottneros AB is expected to generate 1.91 times more return on investment than Inwido AB. However, Rottneros is 1.91 times more volatile than Inwido AB. It trades about -0.03 of its potential returns per unit of risk. Inwido AB is currently generating about -0.21 per unit of risk. If you would invest 948.00 in Rottneros AB on September 4, 2024 and sell it today you would lose (17.00) from holding Rottneros AB or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rottneros AB vs. Inwido AB
Performance |
| Timeline |
| Rottneros AB |
| Inwido AB |
Rottneros and Inwido AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rottneros and Inwido AB
The main advantage of trading using opposite Rottneros and Inwido AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rottneros position performs unexpectedly, Inwido 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 Inwido AB will offset losses from the drop in Inwido AB's long position.| Rottneros vs. BillerudKorsnas AB | Rottneros vs. SSAB AB | Rottneros vs. Svenska Cellulosa Aktiebolaget | Rottneros vs. Axfood AB |
| Inwido AB vs. Upsales Technology AB | Inwido AB vs. Swedbank AB | Inwido AB vs. Beowulf Mining PLC | Inwido AB vs. Axfood 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |