Correlation Between Wilh Wilhelmsen and Cadeler As

Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Cadeler As 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 Wilh Wilhelmsen and Cadeler As into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wilh Wilhelmsen Holding and Cadeler As, you can compare the effects of market volatilities on Wilh Wilhelmsen and Cadeler As 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 Wilh Wilhelmsen with a short position of Cadeler As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Cadeler As.

Diversification Opportunities for Wilh Wilhelmsen and Cadeler As

0.04

Correlation Coefficient

Wilh Wilhelmsen  Cadeler As

Significant diversification

The 3 months correlation between Wilh and Cadeler is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Cadeler As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler As and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with Cadeler As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler As has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Cadeler As go up and down completely randomly.

Pair Corralation between Wilh Wilhelmsen and Cadeler As

Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 0.85 times more return on investment than Cadeler As. However, Wilh Wilhelmsen Holding is 1.18 times less risky than Cadeler As. It trades about 0.02 of its potential returns per unit of risk. Cadeler As is currently generating about -0.27 per unit of risk. If you would invest  38,200  in Wilh Wilhelmsen Holding on November 27, 2024 and sell it today you would earn a total of  500.00  from holding Wilh Wilhelmsen Holding or generate 1.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wilh Wilhelmsen Holding  vs.  Cadeler As

Wilh Wilhelmsen Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wilh Wilhelmsen Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Wilh Wilhelmsen is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Cadeler As

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cadeler As has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Wilh Wilhelmsen and Cadeler As

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

The idea behind Wilh Wilhelmsen Holding and Cadeler As 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .