Correlation Between Link Prop and Indutrade
Can any of the company-specific risk be diversified away by investing in both Link Prop and Indutrade 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 Link Prop and Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Prop Investment and Indutrade AB, you can compare the effects of market volatilities on Link Prop and Indutrade 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 Link Prop with a short position of Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Prop and Indutrade.
Diversification Opportunities for Link Prop and Indutrade
Weak diversification
The 3 months correlation between Link and Indutrade is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Link Prop Investment and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB and Link Prop 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 Link Prop Investment are associated (or correlated) with Indutrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indutrade AB has no effect on the direction of Link Prop i.e., Link Prop and Indutrade go up and down completely randomly.
Pair Corralation between Link Prop and Indutrade
Assuming the 90 days trading horizon Link Prop Investment is expected to generate 0.55 times more return on investment than Indutrade. However, Link Prop Investment is 1.83 times less risky than Indutrade. It trades about 0.02 of its potential returns per unit of risk. Indutrade AB is currently generating about 0.01 per unit of risk. If you would invest 14,601 in Link Prop Investment on August 30, 2025 and sell it today you would earn a total of 99.00 from holding Link Prop Investment or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Prop Investment vs. Indutrade AB
Performance |
| Timeline |
| Link Prop Investment |
| Indutrade AB |
Link Prop and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Prop and Indutrade
The main advantage of trading using opposite Link Prop and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Prop position performs unexpectedly, Indutrade 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 Indutrade will offset losses from the drop in Indutrade's long position.| Link Prop vs. S2Medical AB | Link Prop vs. Upsales Technology AB | Link Prop vs. 24SevenOffice Scandinavia AB | Link Prop vs. Neola Medical AB |
| Indutrade vs. Lundin Mining | Indutrade vs. Qiiwi Games AB | Indutrade vs. Asker Healthcare | Indutrade vs. Sedana Medical 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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