Correlation Between SEAZEN GROUP and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both SEAZEN GROUP and Atrium Ljungberg 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 SEAZEN GROUP and Atrium Ljungberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEAZEN GROUP LTD and Atrium Ljungberg AB, you can compare the effects of market volatilities on SEAZEN GROUP and Atrium Ljungberg 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 SEAZEN GROUP with a short position of Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEAZEN GROUP and Atrium Ljungberg.
Diversification Opportunities for SEAZEN GROUP and Atrium Ljungberg
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEAZEN and Atrium is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SEAZEN GROUP LTD and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg and SEAZEN GROUP 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 SEAZEN GROUP LTD are associated (or correlated) with Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of SEAZEN GROUP i.e., SEAZEN GROUP and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between SEAZEN GROUP and Atrium Ljungberg
Assuming the 90 days trading horizon SEAZEN GROUP LTD is expected to under-perform the Atrium Ljungberg. In addition to that, SEAZEN GROUP is 2.26 times more volatile than Atrium Ljungberg AB. It trades about -0.14 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about -0.21 per unit of volatility. If you would invest 2,025 in Atrium Ljungberg AB on October 14, 2024 and sell it today you would lose (383.00) from holding Atrium Ljungberg AB or give up 18.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEAZEN GROUP LTD vs. Atrium Ljungberg AB
Performance |
| Timeline |
| SEAZEN GROUP LTD |
| Atrium Ljungberg |
SEAZEN GROUP and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEAZEN GROUP and Atrium Ljungberg
The main advantage of trading using opposite SEAZEN GROUP and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEAZEN GROUP position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| SEAZEN GROUP vs. Highlight Communications AG | SEAZEN GROUP vs. SK TELECOM TDADR | SEAZEN GROUP vs. Cairo Communication SpA | SEAZEN GROUP vs. Entravision Communications |
| Atrium Ljungberg vs. Eidesvik Offshore ASA | Atrium Ljungberg vs. BW OFFSHORE LTD | Atrium Ljungberg vs. PT Wintermar Offshore | Atrium Ljungberg vs. Nexstar Media Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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