Correlation Between Autoliv and Kinnevik Investment
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By analyzing existing cross correlation between Autoliv and Kinnevik Investment AB, you can compare the effects of market volatilities on Autoliv and Kinnevik Investment 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 Autoliv with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and Kinnevik Investment.
Diversification Opportunities for Autoliv and Kinnevik Investment
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autoliv and Kinnevik is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Autoliv 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 Autoliv are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Autoliv i.e., Autoliv and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Autoliv and Kinnevik Investment
Assuming the 90 days trading horizon Autoliv is expected to generate 0.69 times more return on investment than Kinnevik Investment. However, Autoliv is 1.46 times less risky than Kinnevik Investment. It trades about 0.03 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.08 per unit of risk. If you would invest 92,992 in Autoliv on August 31, 2024 and sell it today you would earn a total of 15,008 from holding Autoliv or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autoliv vs. Kinnevik Investment AB
Performance |
| Timeline |
| Autoliv |
| Kinnevik Investment |
Autoliv and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoliv and Kinnevik Investment
The main advantage of trading using opposite Autoliv and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoliv position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.The idea behind Autoliv and Kinnevik Investment AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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