Correlation Between Edinburgh Worldwide and Protector Forsikring
Can any of the company-specific risk be diversified away by investing in both Edinburgh Worldwide and Protector Forsikring 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 Edinburgh Worldwide and Protector Forsikring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edinburgh Worldwide Investment and Protector Forsikring ASA, you can compare the effects of market volatilities on Edinburgh Worldwide and Protector Forsikring 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 Edinburgh Worldwide with a short position of Protector Forsikring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edinburgh Worldwide and Protector Forsikring.
Diversification Opportunities for Edinburgh Worldwide and Protector Forsikring
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edinburgh and Protector is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Edinburgh Worldwide Investment and Protector Forsikring ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protector Forsikring ASA and Edinburgh Worldwide 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 Edinburgh Worldwide Investment are associated (or correlated) with Protector Forsikring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protector Forsikring ASA has no effect on the direction of Edinburgh Worldwide i.e., Edinburgh Worldwide and Protector Forsikring go up and down completely randomly.
Pair Corralation between Edinburgh Worldwide and Protector Forsikring
Assuming the 90 days trading horizon Edinburgh Worldwide Investment is expected to generate 0.71 times more return on investment than Protector Forsikring. However, Edinburgh Worldwide Investment is 1.41 times less risky than Protector Forsikring. It trades about 0.23 of its potential returns per unit of risk. Protector Forsikring ASA is currently generating about -0.09 per unit of risk. If you would invest 18,400 in Edinburgh Worldwide Investment on July 18, 2025 and sell it today you would earn a total of 2,600 from holding Edinburgh Worldwide Investment or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edinburgh Worldwide Investment vs. Protector Forsikring ASA
Performance |
| Timeline |
| Edinburgh Worldwide |
| Protector Forsikring ASA |
Edinburgh Worldwide and Protector Forsikring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edinburgh Worldwide and Protector Forsikring
The main advantage of trading using opposite Edinburgh Worldwide and Protector Forsikring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edinburgh Worldwide position performs unexpectedly, Protector Forsikring 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 Protector Forsikring will offset losses from the drop in Protector Forsikring's long position.| Edinburgh Worldwide vs. REC Silicon ASA | Edinburgh Worldwide vs. X FAB Silicon Foundries | Edinburgh Worldwide vs. Gaming Realms plc | Edinburgh Worldwide vs. Young Cos Brewery |
| Protector Forsikring vs. Monster Beverage Corp | Protector Forsikring vs. BE Semiconductor Industries | Protector Forsikring vs. HCA Healthcare | Protector Forsikring vs. PureTech Health plc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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