Correlation Between USWE Sports and Inwido AB
Can any of the company-specific risk be diversified away by investing in both USWE Sports 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 USWE Sports and Inwido AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE Sports AB and Inwido AB, you can compare the effects of market volatilities on USWE Sports 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 USWE Sports with a short position of Inwido AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE Sports and Inwido AB.
Diversification Opportunities for USWE Sports and Inwido AB
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between USWE and Inwido is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding USWE Sports AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido AB and USWE Sports 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 USWE Sports 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 USWE Sports i.e., USWE Sports and Inwido AB go up and down completely randomly.
Pair Corralation between USWE Sports and Inwido AB
Assuming the 90 days trading horizon USWE Sports AB is expected to generate 1.42 times more return on investment than Inwido AB. However, USWE Sports is 1.42 times more volatile than Inwido AB. It trades about 0.19 of its potential returns per unit of risk. Inwido AB is currently generating about 0.1 per unit of risk. If you would invest 920.00 in USWE Sports AB on October 29, 2024 and sell it today you would earn a total of 150.00 from holding USWE Sports AB or generate 16.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
USWE Sports AB vs. Inwido AB
Performance |
| Timeline |
| USWE Sports AB |
| Inwido AB |
USWE Sports and Inwido AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE Sports and Inwido AB
The main advantage of trading using opposite USWE Sports and Inwido AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE Sports 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.| USWE Sports vs. Awardit AB | USWE Sports vs. RVRC Holding AB | USWE Sports vs. MIPS AB | USWE Sports vs. Smart Eye AB |
| Inwido AB vs. USWE Sports AB | Inwido AB vs. JLT Mobile Computers | Inwido AB vs. New Nordic Healthbrands | Inwido AB vs. Scandic Hotels Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |