Correlation Between Svenska Aerogel and Polygiene
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and Polygiene 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 Polygiene 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 Polygiene AB, you can compare the effects of market volatilities on Svenska Aerogel and Polygiene 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 Polygiene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and Polygiene.
Diversification Opportunities for Svenska Aerogel and Polygiene
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Svenska and Polygiene is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and Polygiene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygiene 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 Polygiene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygiene AB has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and Polygiene go up and down completely randomly.
Pair Corralation between Svenska Aerogel and Polygiene
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the Polygiene. But the stock apears to be less risky and, when comparing its historical volatility, Svenska Aerogel Holding is 1.07 times less risky than Polygiene. The stock trades about -0.24 of its potential returns per unit of risk. The Polygiene AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Polygiene AB on October 23, 2024 and sell it today you would earn a total of 115.00 from holding Polygiene AB or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. Polygiene AB
Performance |
| Timeline |
| Svenska Aerogel Holding |
| Polygiene AB |
Svenska Aerogel and Polygiene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and Polygiene
The main advantage of trading using opposite Svenska Aerogel and Polygiene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel position performs unexpectedly, Polygiene 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 Polygiene will offset losses from the drop in Polygiene's long position.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space | Svenska Aerogel vs. Triboron International AB |
| Polygiene vs. G5 Entertainment publ | Polygiene vs. Nexam Chemical Holding | Polygiene vs. Swedencare publ AB | Polygiene vs. Genovis AB |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |