Correlation Between Svenska Aerogel and Norva24 Group
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and Norva24 Group 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 Svenska Aerogel and Norva24 Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Aerogel Holding and Norva24 Group AB, you can compare the effects of market volatilities on Svenska Aerogel and Norva24 Group 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 Svenska Aerogel with a short position of Norva24 Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and Norva24 Group.
Diversification Opportunities for Svenska Aerogel and Norva24 Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Svenska and Norva24 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and Norva24 Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norva24 Group AB and Svenska Aerogel 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 Svenska Aerogel Holding are associated (or correlated) with Norva24 Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norva24 Group AB has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and Norva24 Group go up and down completely randomly.
Pair Corralation between Svenska Aerogel and Norva24 Group
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to generate 4.5 times more return on investment than Norva24 Group. However, Svenska Aerogel is 4.5 times more volatile than Norva24 Group AB. It trades about 0.02 of its potential returns per unit of risk. Norva24 Group AB is currently generating about -0.13 per unit of risk. If you would invest 1,080 in Svenska Aerogel Holding on September 1, 2024 and sell it today you would lose (70.00) from holding Svenska Aerogel Holding or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. Norva24 Group AB
Performance |
| Timeline |
| Svenska Aerogel Holding |
| Norva24 Group AB |
Svenska Aerogel and Norva24 Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and Norva24 Group
The main advantage of trading using opposite Svenska Aerogel and Norva24 Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel position performs unexpectedly, Norva24 Group 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 Norva24 Group will offset losses from the drop in Norva24 Group's long position.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space |
| Norva24 Group vs. Minesto AB | Norva24 Group vs. Sivers IMA Holding | Norva24 Group vs. SolTech Energy Sweden | Norva24 Group vs. AAC Clyde Space |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |