Correlation Between DistIT AB and CoinShares International

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

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

Diversification Opportunities for DistIT AB and CoinShares International

-0.51

Correlation Coefficient

DistIT AB  CoinShares International

Excellent diversification

The 3 months correlation between DistIT and CoinShares is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DistIT AB and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International and DistIT 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 DistIT AB are associated (or correlated) with CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of DistIT AB i.e., DistIT AB and CoinShares International go up and down completely randomly.

Pair Corralation between DistIT AB and CoinShares International

Assuming the 90 days trading horizon DistIT AB is expected to under-perform the CoinShares International. In addition to that, DistIT AB is 2.76 times more volatile than CoinShares International. It trades about -0.13 of its total potential returns per unit of risk. CoinShares International is currently generating about 0.2 per unit of volatility. If you would invest  7,496  in CoinShares International on May 7, 2025 and sell it today you would earn a total of  2,904  from holding CoinShares International or generate 38.74% return on investment over 90 days.

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

DistIT AB  vs.  CoinShares International

DistIT AB

Risk-Adjusted Performance

Weakest

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

CoinShares International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoinShares International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, CoinShares International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DistIT AB and CoinShares International

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

The idea behind DistIT AB and CoinShares International 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 CEOs Directory module to screen CEOs from public companies around the world.