Correlation Between XANO Industri and Wise Group
Can any of the company-specific risk be diversified away by investing in both XANO Industri and Wise Group 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 XANO Industri and Wise Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XANO Industri AB and Wise Group AB, you can compare the effects of market volatilities on XANO Industri and Wise Group 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 XANO Industri with a short position of Wise Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of XANO Industri and Wise Group.
Diversification Opportunities for XANO Industri and Wise Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XANO and Wise is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding XANO Industri AB and Wise Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wise Group AB and XANO Industri 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 XANO Industri AB are associated (or correlated) with Wise Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wise Group AB has no effect on the direction of XANO Industri i.e., XANO Industri and Wise Group go up and down completely randomly.
Pair Corralation between XANO Industri and Wise Group
Assuming the 90 days trading horizon XANO Industri AB is expected to generate 0.97 times more return on investment than Wise Group. However, XANO Industri AB is 1.03 times less risky than Wise Group. It trades about -0.01 of its potential returns per unit of risk. Wise Group AB is currently generating about -0.05 per unit of risk. If you would invest 9,281 in XANO Industri AB on December 1, 2024 and sell it today you would lose (3,161) from holding XANO Industri AB or give up 34.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XANO Industri AB vs. Wise Group AB
Performance |
| Timeline |
| XANO Industri AB |
| Wise Group AB |
XANO Industri and Wise Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XANO Industri and Wise Group
The main advantage of trading using opposite XANO Industri and Wise Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XANO Industri position performs unexpectedly, Wise Group 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 Wise Group will offset losses from the drop in Wise Group's long position.| XANO Industri vs. Troax Group AB | XANO Industri vs. Lagercrantz Group AB | XANO Industri vs. AQ Group AB | XANO Industri vs. OEM International AB |
| Wise Group vs. Rottneros AB | Wise Group vs. Dedicare AB | Wise Group vs. XANO Industri AB | Wise Group vs. Svedbergs i Dalstorp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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