Correlation Between Kinnevik Investment and State Bank
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and State Bank 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 Kinnevik Investment and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and State Bank of, you can compare the effects of market volatilities on Kinnevik Investment and State Bank 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 Kinnevik Investment with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and State Bank.
Diversification Opportunities for Kinnevik Investment and State Bank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinnevik and State is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and State Bank go up and down completely randomly.
Pair Corralation between Kinnevik Investment and State Bank
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the State Bank. In addition to that, Kinnevik Investment is 1.09 times more volatile than State Bank of. It trades about -0.07 of its total potential returns per unit of risk. State Bank of is currently generating about 0.01 per unit of volatility. If you would invest 9,880 in State Bank of on August 30, 2024 and sell it today you would earn a total of 0.00 from holding State Bank of or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. State Bank of
Performance |
| Timeline |
| Kinnevik Investment |
| State Bank |
Kinnevik Investment and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and State Bank
The main advantage of trading using opposite Kinnevik Investment and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Kinnevik Investment vs. Tungsten West PLC | Kinnevik Investment vs. Argo Group Limited | Kinnevik Investment vs. Hardide PLC | Kinnevik Investment vs. Versarien PLC |
| State Bank vs. Optima Health plc | State Bank vs. Microchip Technology | State Bank vs. Spire Healthcare Group | State Bank vs. Omega Healthcare Investors |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |