Correlation Between Momentum Group and Inission
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By analyzing existing cross correlation between Momentum Group AB and Inission AB, you can compare the effects of market volatilities on Momentum Group and Inission 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 Momentum Group with a short position of Inission. Check out your portfolio center. Please also check ongoing floating volatility patterns of Momentum Group and Inission.
Diversification Opportunities for Momentum Group and Inission
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Momentum and Inission is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Momentum Group AB and Inission AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inission AB and Momentum Group 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 Momentum Group AB are associated (or correlated) with Inission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inission AB has no effect on the direction of Momentum Group i.e., Momentum Group and Inission go up and down completely randomly.
Pair Corralation between Momentum Group and Inission
Assuming the 90 days trading horizon Momentum Group AB is expected to generate 0.73 times more return on investment than Inission. However, Momentum Group AB is 1.37 times less risky than Inission. It trades about 0.17 of its potential returns per unit of risk. Inission AB is currently generating about 0.12 per unit of risk. If you would invest 13,987 in Momentum Group AB on March 4, 2024 and sell it today you would earn a total of 4,013 from holding Momentum Group AB or generate 28.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Momentum Group AB vs. Inission AB
Performance |
Timeline |
Momentum Group AB |
Inission AB |
Momentum Group and Inission Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Momentum Group and Inission
The main advantage of trading using opposite Momentum Group and Inission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Momentum Group position performs unexpectedly, Inission 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 Inission will offset losses from the drop in Inission's long position.Momentum Group vs. Indutrade AB | Momentum Group vs. Lifco AB | Momentum Group vs. Lagercrantz Group AB | Momentum Group vs. Beijer Ref AB |
Inission vs. Indutrade AB | Inission vs. Lifco AB | Inission vs. Lagercrantz Group AB | Inission vs. Beijer Ref AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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