Correlation Between Castellum and Intrum Justitia

Can any of the company-specific risk be diversified away by investing in both Castellum and Intrum Justitia 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 Castellum and Intrum Justitia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Castellum AB and Intrum Justitia AB, you can compare the effects of market volatilities on Castellum and Intrum Justitia 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 Castellum with a short position of Intrum Justitia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Intrum Justitia.

Diversification Opportunities for Castellum and Intrum Justitia

0.09

Correlation Coefficient

Castellum  Intrum Justitia

Significant diversification

The 3 months correlation between Castellum and Intrum is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Castellum AB and Intrum Justitia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum Justitia AB and Castellum 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 Castellum AB are associated (or correlated) with Intrum Justitia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum Justitia AB has no effect on the direction of Castellum i.e., Castellum and Intrum Justitia go up and down completely randomly.

Pair Corralation between Castellum and Intrum Justitia

Assuming the 90 days trading horizon Castellum is expected to generate 87.21 times less return on investment than Intrum Justitia. But when comparing it to its historical volatility, Castellum AB is 3.89 times less risky than Intrum Justitia. It trades about 0.01 of its potential returns per unit of risk. Intrum Justitia AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,052  in Intrum Justitia AB on April 21, 2025 and sell it today you would earn a total of  3,800  from holding Intrum Justitia AB or generate 124.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Castellum AB  vs.  Intrum Justitia AB

Castellum AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Castellum AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Castellum is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Intrum Justitia AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intrum Justitia AB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intrum Justitia sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Castellum and Intrum Justitia

The main advantage of trading using opposite Castellum and Intrum Justitia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Intrum Justitia 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 Intrum Justitia will offset losses from the drop in Intrum Justitia's long position.

The idea behind Castellum AB and Intrum Justitia AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.