Correlation Between Integrated Wind and SKAGEN AVKASTNING

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

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

Diversification Opportunities for Integrated Wind and SKAGEN AVKASTNING

-0.51

Correlation Coefficient

Integrated Wind  SKAGEN AVKASTNING

Excellent diversification

The 3 months correlation between Integrated and SKAGEN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and SKAGEN AVKASTNING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKAGEN AVKASTNING and Integrated Wind 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 Integrated Wind Solutions are associated (or correlated) with SKAGEN AVKASTNING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKAGEN AVKASTNING has no effect on the direction of Integrated Wind i.e., Integrated Wind and SKAGEN AVKASTNING go up and down completely randomly.

Pair Corralation between Integrated Wind and SKAGEN AVKASTNING

Assuming the 90 days trading horizon Integrated Wind Solutions is expected to under-perform the SKAGEN AVKASTNING. In addition to that, Integrated Wind is 78.1 times more volatile than SKAGEN AVKASTNING. It trades about -0.1 of its total potential returns per unit of risk. SKAGEN AVKASTNING is currently generating about 1.13 per unit of volatility. If you would invest  14,662  in SKAGEN AVKASTNING on September 17, 2024 and sell it today you would earn a total of  247.00  from holding SKAGEN AVKASTNING or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Integrated Wind Solutions  vs.  SKAGEN AVKASTNING

Integrated Wind Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Wind Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

SKAGEN AVKASTNING

Risk-Adjusted Performance

89 of 100

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in SKAGEN AVKASTNING are ranked lower than 89 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, SKAGEN AVKASTNING is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Integrated Wind and SKAGEN AVKASTNING

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

The idea behind Integrated Wind Solutions and SKAGEN AVKASTNING 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..