Correlation Between Aktia Bank and SSAB AB
Can any of the company-specific risk be diversified away by investing in both Aktia Bank 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 Aktia Bank and SSAB AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aktia Bank Abp and SSAB AB ser, you can compare the effects of market volatilities on Aktia Bank 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 Aktia Bank with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aktia Bank and SSAB AB.
Diversification Opportunities for Aktia Bank and SSAB AB
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aktia and SSAB is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aktia Bank Abp and SSAB AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB ser and Aktia Bank 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 Aktia Bank Abp 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 ser has no effect on the direction of Aktia Bank i.e., Aktia Bank and SSAB AB go up and down completely randomly.
Pair Corralation between Aktia Bank and SSAB AB
Assuming the 90 days trading horizon Aktia Bank Abp is expected to under-perform the SSAB AB. But the stock apears to be less risky and, when comparing its historical volatility, Aktia Bank Abp is 5.71 times less risky than SSAB AB. The stock trades about -0.1 of its potential returns per unit of risk. The SSAB AB ser is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 446.00 in SSAB AB ser on September 4, 2024 and sell it today you would earn a total of 2.00 from holding SSAB AB ser or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aktia Bank Abp vs. SSAB AB ser
Performance |
| Timeline |
| Aktia Bank Abp |
| SSAB AB ser |
Aktia Bank and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aktia Bank and SSAB AB
The main advantage of trading using opposite Aktia Bank and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aktia Bank 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.| Aktia Bank vs. Sampo Oyj A | Aktia Bank vs. Tokmanni Group Oyj | Aktia Bank vs. Nordea Bank Abp | Aktia Bank vs. TietoEVRY Corp |
| SSAB AB vs. SSAB AB ser | SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Metsa Board Oyj | SSAB AB vs. Telia Company 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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