Correlation Between SEB SA and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both SEB SA and MyHealthChecked Plc 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 SEB SA and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEB SA and MyHealthChecked Plc, you can compare the effects of market volatilities on SEB SA and MyHealthChecked Plc 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 SEB SA with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEB SA and MyHealthChecked Plc.
Diversification Opportunities for SEB SA and MyHealthChecked Plc
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEB and MyHealthChecked is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SEB SA and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and SEB SA 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 SEB SA are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of SEB SA i.e., SEB SA and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between SEB SA and MyHealthChecked Plc
Assuming the 90 days trading horizon SEB SA is expected to generate 1.08 times less return on investment than MyHealthChecked Plc. But when comparing it to its historical volatility, SEB SA is 2.01 times less risky than MyHealthChecked Plc. It trades about 0.04 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,125 in MyHealthChecked Plc on September 12, 2024 and sell it today you would earn a total of 0.00 from holding MyHealthChecked Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEB SA vs. MyHealthChecked Plc
Performance |
| Timeline |
| SEB SA |
| MyHealthChecked Plc |
SEB SA and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEB SA and MyHealthChecked Plc
The main advantage of trading using opposite SEB SA and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEB SA position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| SEB SA vs. JD Sports Fashion | SEB SA vs. Charter Communications Cl | SEB SA vs. TechnipFMC PLC | SEB SA vs. Albion Technology General |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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