Correlation Between REGAL ASIAN and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and Skandinaviska Enskilda 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 REGAL ASIAN and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on REGAL ASIAN and Skandinaviska Enskilda 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 REGAL ASIAN with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and Skandinaviska Enskilda.
Diversification Opportunities for REGAL ASIAN and Skandinaviska Enskilda
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REGAL and Skandinaviska is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and REGAL ASIAN 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 REGAL ASIAN INVESTMENTS are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between REGAL ASIAN and Skandinaviska Enskilda
Assuming the 90 days trading horizon REGAL ASIAN is expected to generate 2.79 times less return on investment than Skandinaviska Enskilda. But when comparing it to its historical volatility, REGAL ASIAN INVESTMENTS is 1.21 times less risky than Skandinaviska Enskilda. It trades about 0.03 of its potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 793.00 in Skandinaviska Enskilda Banken on August 31, 2024 and sell it today you would earn a total of 508.00 from holding Skandinaviska Enskilda Banken or generate 64.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| Skandinaviska Enskilda |
REGAL ASIAN and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and Skandinaviska Enskilda
The main advantage of trading using opposite REGAL ASIAN and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| REGAL ASIAN vs. PICKN PAY STORES | REGAL ASIAN vs. Ross Stores | REGAL ASIAN vs. Perseus Mining Limited | REGAL ASIAN vs. GRIFFIN MINING LTD |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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