Correlation Between SaveLend Group and Inwido AB

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

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

Diversification Opportunities for SaveLend Group and Inwido AB

-0.83

Correlation Coefficient

SaveLend Group  Inwido AB

Pay attention - limited upside

The 3 months correlation between SaveLend and Inwido is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Inwido AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inwido AB and SaveLend Group 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 SaveLend Group AB are associated (or correlated) with Inwido AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inwido AB has no effect on the direction of SaveLend Group i.e., SaveLend Group and Inwido AB go up and down completely randomly.

Pair Corralation between SaveLend Group and Inwido AB

Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the Inwido AB. In addition to that, SaveLend Group is 2.05 times more volatile than Inwido AB. It trades about -0.18 of its total potential returns per unit of risk. Inwido AB is currently generating about 0.15 per unit of volatility. If you would invest  18,390  in Inwido AB on December 23, 2024 and sell it today you would earn a total of  2,610  from holding Inwido AB or generate 14.19% return on investment over 90 days.

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

SaveLend Group AB  vs.  Inwido AB

SaveLend Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days SaveLend Group 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Inwido AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inwido AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Inwido AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SaveLend Group and Inwido AB

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

The idea behind SaveLend Group AB and Inwido 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.