Correlation Between WESCO International and Addtech AB
Can any of the company-specific risk be diversified away by investing in both WESCO International and Addtech 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 WESCO International and Addtech AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESCO International and Addtech AB, you can compare the effects of market volatilities on WESCO International and Addtech 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 WESCO International with a short position of Addtech AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESCO International and Addtech AB.
Diversification Opportunities for WESCO International and Addtech AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WESCO and Addtech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WESCO International and Addtech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addtech AB and WESCO International 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 WESCO International are associated (or correlated) with Addtech AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addtech AB has no effect on the direction of WESCO International i.e., WESCO International and Addtech AB go up and down completely randomly.
Pair Corralation between WESCO International and Addtech AB
If you would invest 2,586 in Addtech AB on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Addtech AB or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
WESCO International vs. Addtech AB
Performance |
| Timeline |
| WESCO International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Addtech AB |
WESCO International and Addtech AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESCO International and Addtech AB
The main advantage of trading using opposite WESCO International and Addtech AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESCO International position performs unexpectedly, Addtech 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 Addtech AB will offset losses from the drop in Addtech AB's long position.| WESCO International vs. Zoom Video Communications | WESCO International vs. COLUMBIA SPORTSWEAR | WESCO International vs. CN MODERN DAIRY | WESCO International vs. GEAR4MUSIC LS 10 |
| Addtech AB vs. MEDICAL FACILITIES NEW | Addtech AB vs. SCANDMEDICAL SOLDK 040 | Addtech AB vs. CompuGroup Medical SE | Addtech AB vs. Perseus Mining Limited |
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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