Correlation Between Albion Technology and SEB SA
Can any of the company-specific risk be diversified away by investing in both Albion Technology and SEB SA 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 Albion Technology and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and SEB SA, you can compare the effects of market volatilities on Albion Technology and SEB SA 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 Albion Technology with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and SEB SA.
Diversification Opportunities for Albion Technology and SEB SA
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Albion and SEB is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and Albion Technology 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 Albion Technology General are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Albion Technology i.e., Albion Technology and SEB SA go up and down completely randomly.
Pair Corralation between Albion Technology and SEB SA
Assuming the 90 days trading horizon Albion Technology General is expected to under-perform the SEB SA. But the stock apears to be less risky and, when comparing its historical volatility, Albion Technology General is 1.95 times less risky than SEB SA. The stock trades about -0.09 of its potential returns per unit of risk. The SEB SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,335 in SEB SA on September 13, 2024 and sell it today you would earn a total of 120.00 from holding SEB SA or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Albion Technology General vs. SEB SA
Performance |
| Timeline |
| Albion Technology General |
| SEB SA |
Albion Technology and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and SEB SA
The main advantage of trading using opposite Albion Technology and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Hyundai Motor | Albion Technology vs. Toyota Motor Corp |
| SEB SA vs. Lowland Investment Co | SEB SA vs. Jacquet Metal Service | SEB SA vs. Empire Metals Limited | SEB SA vs. AMG Advanced Metallurgical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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