Correlation Between Cadeler As and Skandia Greenpower
Can any of the company-specific risk be diversified away by investing in both Cadeler As and Skandia Greenpower 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 Cadeler As and Skandia Greenpower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler As and Skandia Greenpower AS, you can compare the effects of market volatilities on Cadeler As and Skandia Greenpower 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 Cadeler As with a short position of Skandia Greenpower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler As and Skandia Greenpower.
Diversification Opportunities for Cadeler As and Skandia Greenpower
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cadeler and Skandia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler As and Skandia Greenpower AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandia Greenpower and Cadeler As 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 Cadeler As are associated (or correlated) with Skandia Greenpower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandia Greenpower has no effect on the direction of Cadeler As i.e., Cadeler As and Skandia Greenpower go up and down completely randomly.
Pair Corralation between Cadeler As and Skandia Greenpower
Assuming the 90 days trading horizon Cadeler As is expected to under-perform the Skandia Greenpower. But the stock apears to be less risky and, when comparing its historical volatility, Cadeler As is 2.55 times less risky than Skandia Greenpower. The stock trades about -0.07 of its potential returns per unit of risk. The Skandia Greenpower AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Skandia Greenpower AS on September 3, 2025 and sell it today you would lose (1.00) from holding Skandia Greenpower AS or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadeler As vs. Skandia Greenpower AS
Performance |
| Timeline |
| Cadeler As |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Skandia Greenpower |
Cadeler As and Skandia Greenpower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadeler As and Skandia Greenpower
The main advantage of trading using opposite Cadeler As and Skandia Greenpower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler As position performs unexpectedly, Skandia Greenpower 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 Skandia Greenpower will offset losses from the drop in Skandia Greenpower's long position.| Cadeler As vs. SD Standard Drilling | Cadeler As vs. Dolphin Drilling AS | Cadeler As vs. Trndelag Sparebank | Cadeler As vs. Aasen Sparebank |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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