Correlation Between Tradegate and Indutrade
Can any of the company-specific risk be diversified away by investing in both Tradegate and Indutrade 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 Tradegate and Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Indutrade AB, you can compare the effects of market volatilities on Tradegate and Indutrade 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 Tradegate with a short position of Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Indutrade.
Diversification Opportunities for Tradegate and Indutrade
Good diversification
The 3 months correlation between Tradegate and Indutrade is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with Indutrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indutrade AB has no effect on the direction of Tradegate i.e., Tradegate and Indutrade go up and down completely randomly.
Pair Corralation between Tradegate and Indutrade
Assuming the 90 days horizon Tradegate is expected to generate 451.71 times less return on investment than Indutrade. But when comparing it to its historical volatility, Tradegate AG Wertpapierhandelsbank is 4.58 times less risky than Indutrade. It trades about 0.0 of its potential returns per unit of risk. Indutrade AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,406 in Indutrade AB on October 30, 2024 and sell it today you would earn a total of 142.00 from holding Indutrade AB or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Indutrade AB
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Indutrade AB |
Tradegate and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Indutrade
The main advantage of trading using opposite Tradegate and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Indutrade 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 Indutrade will offset losses from the drop in Indutrade's long position.| Tradegate vs. Austevoll Seafood ASA | Tradegate vs. Brockhaus Capital Management | Tradegate vs. Jupiter Fund Management | Tradegate vs. Lery Seafood Group |
| Indutrade vs. CEOTRONICS | Indutrade vs. Cass Information Systems | Indutrade vs. China Datang | Indutrade vs. Waste Management |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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