Correlation Between Svenska Aerogel and SSAB AB
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and SSAB AB 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 SSAB AB 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 SSAB AB, you can compare the effects of market volatilities on Svenska Aerogel and SSAB AB 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 SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and SSAB AB.
Diversification Opportunities for Svenska Aerogel and SSAB AB
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Svenska and SSAB is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and SSAB AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB 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 SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and SSAB AB go up and down completely randomly.
Pair Corralation between Svenska Aerogel and SSAB AB
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the SSAB AB. In addition to that, Svenska Aerogel is 2.93 times more volatile than SSAB AB. It trades about -0.11 of its total potential returns per unit of risk. SSAB AB is currently generating about -0.06 per unit of volatility. If you would invest 5,478 in SSAB AB on October 26, 2024 and sell it today you would lose (887.00) from holding SSAB AB or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. SSAB AB
Performance |
| Timeline |
| Svenska Aerogel Holding |
| SSAB AB |
Svenska Aerogel and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and SSAB AB
The main advantage of trading using opposite Svenska Aerogel and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel position performs unexpectedly, SSAB AB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space | Svenska Aerogel vs. KABE Group AB |
| SSAB AB vs. Boliden AB | SSAB AB vs. SSAB AB | SSAB AB vs. Tele2 AB | SSAB AB vs. Samhllsbyggnadsbolaget i Norden |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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