Correlation Between Spago Nanomedical and Inwido AB
Can any of the company-specific risk be diversified away by investing in both Spago Nanomedical 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 Spago Nanomedical and Inwido AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spago Nanomedical AB and Inwido AB, you can compare the effects of market volatilities on Spago Nanomedical 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 Spago Nanomedical with a short position of Inwido AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spago Nanomedical and Inwido AB.
Diversification Opportunities for Spago Nanomedical and Inwido AB
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spago and Inwido is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Spago Nanomedical AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido AB and Spago Nanomedical 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 Spago Nanomedical 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 Spago Nanomedical i.e., Spago Nanomedical and Inwido AB go up and down completely randomly.
Pair Corralation between Spago Nanomedical and Inwido AB
Assuming the 90 days trading horizon Spago Nanomedical AB is expected to generate 3.56 times more return on investment than Inwido AB. However, Spago Nanomedical is 3.56 times more volatile than Inwido AB. It trades about 0.4 of its potential returns per unit of risk. Inwido AB is currently generating about -0.27 per unit of risk. If you would invest 17.00 in Spago Nanomedical AB on October 15, 2024 and sell it today you would earn a total of 4.00 from holding Spago Nanomedical AB or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spago Nanomedical AB vs. Inwido AB
Performance |
| Timeline |
| Spago Nanomedical |
| Inwido AB |
Spago Nanomedical and Inwido AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spago Nanomedical and Inwido AB
The main advantage of trading using opposite Spago Nanomedical and Inwido AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spago Nanomedical 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.| Spago Nanomedical vs. Scandion Oncology AS | Spago Nanomedical vs. Alligator Bioscience AB | Spago Nanomedical vs. Abliva AB | Spago Nanomedical vs. Saniona AB |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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