Correlation Between Idogen AB and Clean Motion

Can any of the company-specific risk be diversified away by investing in both Idogen AB and Clean Motion 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 Idogen AB and Clean Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Idogen AB and Clean Motion AB, you can compare the effects of market volatilities on Idogen AB and Clean Motion 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 Idogen AB with a short position of Clean Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idogen AB and Clean Motion.

Diversification Opportunities for Idogen AB and Clean Motion

0.0

Correlation Coefficient

Idogen AB  Clean Motion

Pay attention - limited upside

The 3 months correlation between Idogen and Clean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Idogen AB and Clean Motion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Motion AB and Idogen AB 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 Idogen AB are associated (or correlated) with Clean Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Motion AB has no effect on the direction of Idogen AB i.e., Idogen AB and Clean Motion go up and down completely randomly.

Pair Corralation between Idogen AB and Clean Motion

If you would invest  12.00  in Idogen AB on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Idogen AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Idogen AB  vs.  Clean Motion AB

Idogen AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Idogen AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Idogen AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Clean Motion AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clean Motion AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Idogen AB and Clean Motion

The main advantage of trading using opposite Idogen AB and Clean Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idogen AB position performs unexpectedly, Clean Motion 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 Clean Motion will offset losses from the drop in Clean Motion's long position.

The idea behind Idogen AB and Clean Motion AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.