Correlation Between Integrated Wind and Polight ASA
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Polight ASA 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 Polight ASA 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 Polight ASA, you can compare the effects of market volatilities on Integrated Wind and Polight ASA 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 Polight ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Polight ASA.
Diversification Opportunities for Integrated Wind and Polight ASA
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integrated and Polight is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Polight ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polight ASA 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 Polight ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polight ASA has no effect on the direction of Integrated Wind i.e., Integrated Wind and Polight ASA go up and down completely randomly.
Pair Corralation between Integrated Wind and Polight ASA
Assuming the 90 days trading horizon Integrated Wind is expected to generate 4.82 times less return on investment than Polight ASA. But when comparing it to its historical volatility, Integrated Wind Solutions is 3.11 times less risky than Polight ASA. It trades about 0.13 of its potential returns per unit of risk. Polight ASA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Polight ASA on June 2, 2025 and sell it today you would earn a total of 212.00 from holding Polight ASA or generate 62.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Polight ASA
Performance |
| Timeline |
| Integrated Wind Solutions |
| Polight ASA |
Integrated Wind and Polight ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Polight ASA
The main advantage of trading using opposite Integrated Wind and Polight ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Polight ASA 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 Polight ASA will offset losses from the drop in Polight ASA's long position.| Integrated Wind vs. Bonheur | Integrated Wind vs. Scatec Solar OL | Integrated Wind vs. Aker Carbon Capture | Integrated Wind vs. Cadeler As |
| Polight ASA vs. Europris ASA | Polight ASA vs. Kongsberg Gruppen ASA | Polight ASA vs. Nordic Semiconductor ASA | Polight ASA vs. Storebrand ASA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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