Correlation Between Avanza Bank and Sdiptech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Avanza Bank Holding and Sdiptech AB, you can compare the effects of market volatilities on Avanza Bank and Sdiptech 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 Avanza Bank with a short position of Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and Sdiptech.
Diversification Opportunities for Avanza Bank and Sdiptech
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avanza and Sdiptech is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Avanza Bank Holding and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech AB and Avanza 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 Avanza Bank Holding are associated (or correlated) with Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of Avanza Bank i.e., Avanza Bank and Sdiptech go up and down completely randomly.
Pair Corralation between Avanza Bank and Sdiptech
Assuming the 90 days trading horizon Avanza Bank Holding is expected to generate 3.35 times more return on investment than Sdiptech. However, Avanza Bank is 3.35 times more volatile than Sdiptech AB. It trades about 0.36 of its potential returns per unit of risk. Sdiptech AB is currently generating about 0.05 per unit of risk. If you would invest 24,210 in Avanza Bank Holding on November 3, 2024 and sell it today you would earn a total of 9,210 from holding Avanza Bank Holding or generate 38.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanza Bank Holding vs. Sdiptech AB
Performance |
| Timeline |
| Avanza Bank Holding |
| Sdiptech AB |
Avanza Bank and Sdiptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanza Bank and Sdiptech
The main advantage of trading using opposite Avanza Bank and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanza Bank position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech's long position.| Avanza Bank vs. Axfood AB | Avanza Bank vs. Samhllsbyggnadsbolaget i Norden | Avanza Bank vs. Castellum AB | Avanza Bank vs. Investor AB ser |
| Sdiptech vs. Sdiptech AB | Sdiptech vs. AB Sagax | Sdiptech vs. Corem Property Group | Sdiptech vs. Volati 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |