Correlation Between St Galler and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both St Galler and Kinnevik Investment 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 St Galler and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Kinnevik Investment AB, you can compare the effects of market volatilities on St Galler and Kinnevik Investment 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 St Galler with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Kinnevik Investment.
Diversification Opportunities for St Galler and Kinnevik Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Kinnevik is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of St Galler i.e., St Galler and Kinnevik Investment go up and down completely randomly.
Pair Corralation between St Galler and Kinnevik Investment
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to generate 0.49 times more return on investment than Kinnevik Investment. However, St Galler Kantonalbank is 2.03 times less risky than Kinnevik Investment. It trades about 0.12 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.11 per unit of risk. If you would invest 42,050 in St Galler Kantonalbank on September 24, 2024 and sell it today you would earn a total of 800.00 from holding St Galler Kantonalbank or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Kinnevik Investment AB
Performance |
| Timeline |
| St Galler Kantonalbank |
| Kinnevik Investment |
St Galler and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Kinnevik Investment
The main advantage of trading using opposite St Galler and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| St Galler vs. Uniper SE | St Galler vs. Mulberry Group PLC | St Galler vs. London Security Plc | St Galler vs. Triad Group PLC |
| Kinnevik Investment vs. Discover Financial Services | Kinnevik Investment vs. MT Bank Corp | Kinnevik Investment vs. St Galler Kantonalbank | Kinnevik Investment vs. Tatton Asset Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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