Correlation Between Klimator and ChargePanel

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

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

Diversification Opportunities for Klimator and ChargePanel

0.52

Correlation Coefficient

Klimator  ChargePanel

Very weak diversification

The 3 months correlation between Klimator and ChargePanel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Klimator AB and ChargePanel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePanel AB and Klimator 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 Klimator AB are associated (or correlated) with ChargePanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePanel AB has no effect on the direction of Klimator i.e., Klimator and ChargePanel go up and down completely randomly.

Pair Corralation between Klimator and ChargePanel

Assuming the 90 days trading horizon Klimator is expected to generate 5.79 times less return on investment than ChargePanel. But when comparing it to its historical volatility, Klimator AB is 1.74 times less risky than ChargePanel. It trades about 0.05 of its potential returns per unit of risk. ChargePanel AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  130.00  in ChargePanel AB on April 21, 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

Klimator AB  vs.  ChargePanel AB

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.

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 weak basic indicators, ChargePanel sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Klimator and ChargePanel

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

The idea behind Klimator AB and ChargePanel 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.