Correlation Between Wilh Wilhelmsen and Voss Veksel
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Voss Veksel 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 Wilh Wilhelmsen and Voss Veksel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and Voss Veksel og, you can compare the effects of market volatilities on Wilh Wilhelmsen and Voss Veksel 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 Wilh Wilhelmsen with a short position of Voss Veksel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Voss Veksel.
Diversification Opportunities for Wilh Wilhelmsen and Voss Veksel
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wilh and Voss is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Voss Veksel og in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voss Veksel og and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with Voss Veksel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voss Veksel og has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Voss Veksel go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and Voss Veksel
Assuming the 90 days trading horizon Wilh Wilhelmsen is expected to generate 1.72 times less return on investment than Voss Veksel. In addition to that, Wilh Wilhelmsen is 1.03 times more volatile than Voss Veksel og. It trades about 0.06 of its total potential returns per unit of risk. Voss Veksel og is currently generating about 0.11 per unit of volatility. If you would invest 25,400 in Voss Veksel og on August 28, 2024 and sell it today you would earn a total of 5,800 from holding Voss Veksel og or generate 22.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilh Wilhelmsen Holding vs. Voss Veksel og
Performance |
| Timeline |
| Wilh Wilhelmsen Holding |
| Voss Veksel og |
Wilh Wilhelmsen and Voss Veksel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilh Wilhelmsen and Voss Veksel
The main advantage of trading using opposite Wilh Wilhelmsen and Voss Veksel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, Voss Veksel 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 Voss Veksel will offset losses from the drop in Voss Veksel's long position.| Wilh Wilhelmsen vs. Eidesvik Offshore ASA | Wilh Wilhelmsen vs. Kitron ASA | Wilh Wilhelmsen vs. Havila Shipping ASA | Wilh Wilhelmsen vs. Elkem ASA |
| Voss Veksel vs. Wilh Wilhelmsen Holding | Voss Veksel vs. Sparebank 1 Nord Norge | Voss Veksel vs. Melhus Sparebank | Voss Veksel vs. Pareto Bank ASA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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