Correlation Between Skandinaviska Enskilda and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Skandinaviska Enskilda and Komercni Banka 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 Skandinaviska Enskilda and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skandinaviska Enskilda Banken and Komercni Banka, you can compare the effects of market volatilities on Skandinaviska Enskilda and Komercni Banka 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 Skandinaviska Enskilda with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and Komercni Banka.
Diversification Opportunities for Skandinaviska Enskilda and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skandinaviska and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka and Skandinaviska Enskilda 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 Skandinaviska Enskilda Banken are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and Komercni Banka go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and Komercni Banka
If you would invest 53,400 in Komercni Banka on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Komercni Banka or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. Komercni Banka
Performance |
| Timeline |
| Skandinaviska Enskilda |
| Komercni Banka |
Skandinaviska Enskilda and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and Komercni Banka
The main advantage of trading using opposite Skandinaviska Enskilda and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Skandinaviska Enskilda vs. Lendinvest PLC | Skandinaviska Enskilda vs. Neometals | Skandinaviska Enskilda vs. Albion Technology General | Skandinaviska Enskilda vs. Jupiter Fund Management |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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