Correlation Between Avanza Bank and SaveLend Group
Can any of the company-specific risk be diversified away by investing in both Avanza Bank and SaveLend Group 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 Avanza Bank and SaveLend Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avanza Bank Holding and SaveLend Group AB, you can compare the effects of market volatilities on Avanza Bank and SaveLend Group 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 SaveLend Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and SaveLend Group.
Diversification Opportunities for Avanza Bank and SaveLend Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avanza and SaveLend is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Avanza Bank Holding and SaveLend Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaveLend Group 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 SaveLend Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaveLend Group AB has no effect on the direction of Avanza Bank i.e., Avanza Bank and SaveLend Group go up and down completely randomly.
Pair Corralation between Avanza Bank and SaveLend Group
Assuming the 90 days trading horizon Avanza Bank Holding is expected to generate 0.9 times more return on investment than SaveLend Group. However, Avanza Bank Holding is 1.11 times less risky than SaveLend Group. It trades about 0.36 of its potential returns per unit of risk. SaveLend Group AB is currently generating about -0.18 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanza Bank Holding vs. SaveLend Group AB
Performance |
| Timeline |
| Avanza Bank Holding |
| SaveLend Group AB |
Avanza Bank and SaveLend Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanza Bank and SaveLend Group
The main advantage of trading using opposite Avanza Bank and SaveLend Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanza Bank position performs unexpectedly, SaveLend Group 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 SaveLend Group will offset losses from the drop in SaveLend Group'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 |
| SaveLend Group vs. Smart Eye AB | SaveLend Group vs. Nepa AB | SaveLend Group vs. MAG Interactive AB | SaveLend Group vs. Hexatronic Group 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |