Correlation Between Systemair and Young Cos
Can any of the company-specific risk be diversified away by investing in both Systemair and Young Cos 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 Systemair and Young Cos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Young Cos Brewery, you can compare the effects of market volatilities on Systemair and Young Cos 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 Systemair with a short position of Young Cos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Young Cos.
Diversification Opportunities for Systemair and Young Cos
Very good diversification
The 3 months correlation between Systemair and Young is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Young Cos Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Cos Brewery and Systemair 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 Systemair AB are associated (or correlated) with Young Cos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Cos Brewery has no effect on the direction of Systemair i.e., Systemair and Young Cos go up and down completely randomly.
Pair Corralation between Systemair and Young Cos
Assuming the 90 days trading horizon Systemair AB is expected to generate 1.31 times more return on investment than Young Cos. However, Systemair is 1.31 times more volatile than Young Cos Brewery. It trades about 0.21 of its potential returns per unit of risk. Young Cos Brewery is currently generating about 0.07 per unit of risk. If you would invest 8,320 in Systemair AB on August 25, 2024 and sell it today you would earn a total of 760.00 from holding Systemair AB or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Young Cos Brewery
Performance |
| Timeline |
| Systemair AB |
| Young Cos Brewery |
Systemair and Young Cos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Young Cos
The main advantage of trading using opposite Systemair and Young Cos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Young Cos 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 Young Cos will offset losses from the drop in Young Cos' long position.| Systemair vs. X FAB Silicon Foundries | Systemair vs. Darden Restaurants | Systemair vs. Summit Materials Cl | Systemair vs. Take Two Interactive Software |
| Young Cos vs. Toyota Motor Corp | Young Cos vs. SoftBank Group Corp | Young Cos vs. State Bank of | Young Cos vs. Freddie Mac |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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