Correlation Between SOEDER SPORTFISKE and United Airlines
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and United Airlines 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 United Airlines 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 United Airlines Holdings, you can compare the effects of market volatilities on SOEDER SPORTFISKE and United Airlines 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 United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and United Airlines.
Diversification Opportunities for SOEDER SPORTFISKE and United Airlines
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOEDER and United is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and United Airlines go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and United Airlines
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to under-perform the United Airlines. But the stock apears to be less risky and, when comparing its historical volatility, SOEDER SPORTFISKE AB is 1.95 times less risky than United Airlines. The stock trades about -0.11 of its potential returns per unit of risk. The United Airlines Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,296 in United Airlines Holdings on October 11, 2024 and sell it today you would earn a total of 404.00 from holding United Airlines Holdings or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. United Airlines Holdings
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| United Airlines Holdings |
SOEDER SPORTFISKE and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and United Airlines
The main advantage of trading using opposite SOEDER SPORTFISKE and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| SOEDER SPORTFISKE vs. 24SEVENOFFICE GROUP AB | SOEDER SPORTFISKE vs. AGF Management Limited | SOEDER SPORTFISKE vs. Brockhaus Capital Management | SOEDER SPORTFISKE vs. MAVEN WIRELESS SWEDEN |
| United Airlines vs. Comba Telecom Systems | United Airlines vs. Highlight Communications AG | United Airlines vs. GAMING FAC SA | United Airlines vs. INTERSHOP Communications Aktiengesellschaft |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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