Correlation Between Baraboo Bancorporation and Swedbank
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation and Swedbank 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 Baraboo Bancorporation and Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and Swedbank AB, you can compare the effects of market volatilities on Baraboo Bancorporation and Swedbank 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 Baraboo Bancorporation with a short position of Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and Swedbank.
Diversification Opportunities for Baraboo Bancorporation and Swedbank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baraboo and Swedbank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB and Baraboo Bancorporation 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 Baraboo Bancorporation are associated (or correlated) with Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of Baraboo Bancorporation i.e., Baraboo Bancorporation and Swedbank go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and Swedbank
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 1.94 times more return on investment than Swedbank. However, Baraboo Bancorporation is 1.94 times more volatile than Swedbank AB. It trades about 0.02 of its potential returns per unit of risk. Swedbank AB is currently generating about 0.03 per unit of risk. If you would invest 355.00 in Baraboo Bancorporation on October 21, 2024 and sell it today you would earn a total of 4.00 from holding Baraboo Bancorporation or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.06% |
| Values | Daily Returns |
Baraboo Bancorp. vs. Swedbank AB
Performance |
| Timeline |
| Baraboo Bancorporation |
| Swedbank AB |
Baraboo Bancorporation and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and Swedbank
The main advantage of trading using opposite Baraboo Bancorporation and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank's long position.| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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