Correlation Between Scandinavian Tobacco and AGRICULTBK HADR/25
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and AGRICULTBK HADR/25 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 Scandinavian Tobacco and AGRICULTBK HADR/25 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Tobacco Group and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on Scandinavian Tobacco and AGRICULTBK HADR/25 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 Scandinavian Tobacco with a short position of AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and AGRICULTBK HADR/25.
Diversification Opportunities for Scandinavian Tobacco and AGRICULTBK HADR/25
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scandinavian and AGRICULTBK is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and AGRICULTBK HADR/25 go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and AGRICULTBK HADR/25
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to generate 2.47 times more return on investment than AGRICULTBK HADR/25. However, Scandinavian Tobacco is 2.47 times more volatile than AGRICULTBK HADR25 YC. It trades about 0.06 of its potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.06 per unit of risk. If you would invest 435.00 in Scandinavian Tobacco Group on September 3, 2024 and sell it today you would earn a total of 839.00 from holding Scandinavian Tobacco Group or generate 192.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. AGRICULTBK HADR25 YC
Performance |
| Timeline |
| Scandinavian Tobacco |
| AGRICULTBK HADR/25 |
Scandinavian Tobacco and AGRICULTBK HADR/25 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and AGRICULTBK HADR/25
The main advantage of trading using opposite Scandinavian Tobacco and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.| Scandinavian Tobacco vs. British American Tobacco | Scandinavian Tobacco vs. Japan Tobacco | Scandinavian Tobacco vs. JAPAN TOBACCO UNSPADR12 | Scandinavian Tobacco vs. Imperial Brands PLC |
| AGRICULTBK HADR/25 vs. Kaiser Aluminum | AGRICULTBK HADR/25 vs. AUST AGRICULTURAL | AGRICULTBK HADR/25 vs. DAIRY FARM INTL | AGRICULTBK HADR/25 vs. Lion One Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |