Correlation Between ChargePanel and Klimator

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

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

Diversification Opportunities for ChargePanel and Klimator

0.57

Correlation Coefficient

ChargePanel  Klimator

Very weak diversification

The 3 months correlation between ChargePanel and Klimator is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ChargePanel AB and Klimator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klimator AB and ChargePanel 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 ChargePanel AB are associated (or correlated) with Klimator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klimator AB has no effect on the direction of ChargePanel i.e., ChargePanel and Klimator go up and down completely randomly.

Pair Corralation between ChargePanel and Klimator

Assuming the 90 days trading horizon ChargePanel AB is expected to generate 1.74 times more return on investment than Klimator. However, ChargePanel is 1.74 times more volatile than Klimator AB. It trades about 0.16 of its potential returns per unit of risk. Klimator AB is currently generating about 0.05 per unit of risk. If you would invest  130.00  in ChargePanel AB on April 20, 2025 and sell it today you would earn a total of  70.00  from holding ChargePanel AB or generate 53.85% return on investment over 90 days.

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

ChargePanel AB  vs.  Klimator AB

ChargePanel AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ChargePanel AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, ChargePanel sustained solid returns over the last few months and may actually be approaching a breakup point.

Klimator AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Klimator AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Klimator may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ChargePanel and Klimator

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

The idea behind ChargePanel AB and Klimator 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.