Correlation Between Autoliv and SSAB AB
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By analyzing existing cross correlation between Autoliv and SSAB AB, you can compare the effects of market volatilities on Autoliv 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 Autoliv with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and SSAB AB.
Diversification Opportunities for Autoliv and SSAB AB
Weak diversification
The 3 months correlation between Autoliv and SSAB is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and SSAB AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB 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 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 Autoliv i.e., Autoliv and SSAB AB go up and down completely randomly.
Pair Corralation between Autoliv and SSAB AB
Assuming the 90 days trading horizon Autoliv is expected to generate 0.85 times more return on investment than SSAB AB. However, Autoliv is 1.18 times less risky than SSAB AB. It trades about 0.04 of its potential returns per unit of risk. SSAB AB is currently generating about 0.01 per unit of risk. If you would invest 79,653 in Autoliv on September 2, 2024 and sell it today you would earn a total of 28,347 from holding Autoliv or generate 35.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autoliv vs. SSAB AB
Performance |
| Timeline |
| Autoliv |
| SSAB AB |
Autoliv and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoliv and SSAB AB
The main advantage of trading using opposite Autoliv and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoliv 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.| Autoliv vs. Episurf Medical AB | Autoliv vs. Online Brands Nordic | Autoliv vs. Scandinavian Enviro Systems | Autoliv vs. Acconeer 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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