Correlation Between DistIT AB and Havsfrun Investment

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

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

Diversification Opportunities for DistIT AB and Havsfrun Investment

-0.74

Correlation Coefficient

DistIT AB  Havsfrun Investment

Pay attention - limited upside

The 3 months correlation between DistIT and Havsfrun is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding DistIT AB and Havsfrun Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havsfrun Investment and DistIT 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 DistIT AB are associated (or correlated) with Havsfrun Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havsfrun Investment has no effect on the direction of DistIT AB i.e., DistIT AB and Havsfrun Investment go up and down completely randomly.

Pair Corralation between DistIT AB and Havsfrun Investment

Assuming the 90 days trading horizon DistIT AB is expected to under-perform the Havsfrun Investment. In addition to that, DistIT AB is 1.94 times more volatile than Havsfrun Investment AB. It trades about -0.06 of its total potential returns per unit of risk. Havsfrun Investment AB is currently generating about 0.1 per unit of volatility. If you would invest  1,055  in Havsfrun Investment AB on September 5, 2024 and sell it today you would earn a total of  170.00  from holding Havsfrun Investment AB or generate 16.11% return on investment over 90 days.

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

DistIT AB  vs.  Havsfrun Investment AB

DistIT AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DistIT AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Havsfrun Investment

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Havsfrun Investment AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Havsfrun Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DistIT AB and Havsfrun Investment

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

The idea behind DistIT AB and Havsfrun Investment 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.