Correlation Between SOEDER SPORTFISKE and Keck Seng
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and Keck Seng 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 Keck Seng 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 Keck Seng Investments, you can compare the effects of market volatilities on SOEDER SPORTFISKE and Keck Seng 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 Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and Keck Seng.
Diversification Opportunities for SOEDER SPORTFISKE and Keck Seng
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SOEDER and Keck is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments 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 Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and Keck Seng go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and Keck Seng
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to under-perform the Keck Seng. But the stock apears to be less risky and, when comparing its historical volatility, SOEDER SPORTFISKE AB is 2.03 times less risky than Keck Seng. The stock trades about -0.01 of its potential returns per unit of risk. The Keck Seng Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Keck Seng Investments on October 18, 2024 and sell it today you would earn a total of 3.00 from holding Keck Seng Investments or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. Keck Seng Investments
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| Keck Seng Investments |
SOEDER SPORTFISKE and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and Keck Seng
The main advantage of trading using opposite SOEDER SPORTFISKE and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| SOEDER SPORTFISKE vs. PLANT VEDA FOODS | SOEDER SPORTFISKE vs. SOUTHWEST AIRLINES | SOEDER SPORTFISKE vs. MOLSON RS BEVERAGE | SOEDER SPORTFISKE vs. JAPAN AIRLINES |
| Keck Seng vs. SOEDER SPORTFISKE AB | Keck Seng vs. Air Transport Services | Keck Seng vs. SALESFORCE INC CDR | Keck Seng vs. TRADELINK ELECTRON |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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