Correlation Between SOEDER SPORTFISKE and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on SOEDER SPORTFISKE and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and KENEDIX OFFICE.
Diversification Opportunities for SOEDER SPORTFISKE and KENEDIX OFFICE
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SOEDER and KENEDIX is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and KENEDIX OFFICE
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 3.03 times more return on investment than KENEDIX OFFICE. However, SOEDER SPORTFISKE is 3.03 times more volatile than KENEDIX OFFICE INV. It trades about 0.05 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about -0.01 per unit of risk. If you would invest 141.00 in SOEDER SPORTFISKE AB on November 8, 2024 and sell it today you would earn a total of 107.00 from holding SOEDER SPORTFISKE AB or generate 75.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| KENEDIX OFFICE INV |
SOEDER SPORTFISKE and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and KENEDIX OFFICE
The main advantage of trading using opposite SOEDER SPORTFISKE and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| SOEDER SPORTFISKE vs. Booking Holdings | SOEDER SPORTFISKE vs. Oriental Land Co | SOEDER SPORTFISKE vs. ANTA Sports Products | SOEDER SPORTFISKE vs. Li Ning Company |
| KENEDIX OFFICE vs. Check Point Software | KENEDIX OFFICE vs. Beta Systems Software | KENEDIX OFFICE vs. MEDCAW INVESTMENTS LS 01 | KENEDIX OFFICE vs. Wayside Technology 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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