Correlation Between SOEDER SPORTFISKE and WINMARK
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and WINMARK 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 SOEDER SPORTFISKE and WINMARK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOEDER SPORTFISKE AB and WINMARK, you can compare the effects of market volatilities on SOEDER SPORTFISKE and WINMARK 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 SOEDER SPORTFISKE with a short position of WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and WINMARK.
Diversification Opportunities for SOEDER SPORTFISKE and WINMARK
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOEDER and WINMARK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB are associated (or correlated) with WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and WINMARK go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and WINMARK
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 2.83 times more return on investment than WINMARK. However, SOEDER SPORTFISKE is 2.83 times more volatile than WINMARK. It trades about 0.4 of its potential returns per unit of risk. WINMARK is currently generating about -0.13 per unit of risk. If you would invest 208.00 in SOEDER SPORTFISKE AB on October 25, 2024 and sell it today you would earn a total of 57.00 from holding SOEDER SPORTFISKE AB or generate 27.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. WINMARK
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| WINMARK |
SOEDER SPORTFISKE and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and WINMARK
The main advantage of trading using opposite SOEDER SPORTFISKE and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| SOEDER SPORTFISKE vs. TreeHouse Foods | SOEDER SPORTFISKE vs. PURE FOODS TASMANIA | SOEDER SPORTFISKE vs. CAL MAINE FOODS | SOEDER SPORTFISKE vs. SENECA FOODS A |
| WINMARK vs. Beazer Homes USA | WINMARK vs. PULSION Medical Systems | WINMARK vs. CREO MEDICAL GRP | WINMARK vs. Haverty Furniture Companies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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