Correlation Between Inwido AB and NOTE AB
Can any of the company-specific risk be diversified away by investing in both Inwido AB and NOTE 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 Inwido AB and NOTE AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inwido AB and NOTE AB, you can compare the effects of market volatilities on Inwido AB and NOTE 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 Inwido AB with a short position of NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inwido AB and NOTE AB.
Diversification Opportunities for Inwido AB and NOTE AB
Excellent diversification
The 3 months correlation between Inwido and NOTE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inwido AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE AB and Inwido AB 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 Inwido AB are associated (or correlated) with NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Inwido AB i.e., Inwido AB and NOTE AB go up and down completely randomly.
Pair Corralation between Inwido AB and NOTE AB
Assuming the 90 days trading horizon Inwido AB is expected to under-perform the NOTE AB. But the stock apears to be less risky and, when comparing its historical volatility, Inwido AB is 1.35 times less risky than NOTE AB. The stock trades about -0.03 of its potential returns per unit of risk. The NOTE AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 16,030 in NOTE AB on April 25, 2025 and sell it today you would earn a total of 3,510 from holding NOTE AB or generate 21.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Inwido AB vs. NOTE AB
Performance |
Timeline |
Inwido AB |
NOTE AB |
Inwido AB and NOTE AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inwido AB and NOTE AB
The main advantage of trading using opposite Inwido AB and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inwido AB position performs unexpectedly, NOTE 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 NOTE AB will offset losses from the drop in NOTE AB's long position.Inwido AB vs. Flexion Mobile PLC | Inwido AB vs. Vitec Software Group | Inwido AB vs. FormPipe Software AB | Inwido AB vs. Maven Wireless Sweden |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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