Correlation Between Online Brands and Indutrade
Can any of the company-specific risk be diversified away by investing in both Online Brands 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 Online Brands and Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Online Brands Nordic and Indutrade AB, you can compare the effects of market volatilities on Online Brands 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 Online Brands with a short position of Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and Indutrade.
Diversification Opportunities for Online Brands and Indutrade
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Online and Indutrade is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB and Online Brands 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 Online Brands Nordic 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 Online Brands i.e., Online Brands and Indutrade go up and down completely randomly.
Pair Corralation between Online Brands and Indutrade
Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 1.93 times more return on investment than Indutrade. However, Online Brands is 1.93 times more volatile than Indutrade AB. It trades about 0.11 of its potential returns per unit of risk. Indutrade AB is currently generating about 0.01 per unit of risk. If you would invest 1,230 in Online Brands Nordic on September 10, 2025 and sell it today you would earn a total of 270.00 from holding Online Brands Nordic or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Online Brands Nordic vs. Indutrade AB
Performance |
| Timeline |
| Online Brands Nordic |
| Indutrade AB |
Online Brands and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Online Brands and Indutrade
The main advantage of trading using opposite Online Brands and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Online Brands 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.| Online Brands vs. Elon AB | Online Brands vs. Unlimited Travel Group | Online Brands vs. Lammhults Design Group | Online Brands vs. OXE Marine AB |
| Indutrade vs. Addtech AB | Indutrade vs. Trelleborg AB | Indutrade vs. Beijer Ref AB | Indutrade vs. Skanska 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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