Correlation Between BE Group and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both BE Group and Skandinaviska Enskilda 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 BE Group and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BE Group AB and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on BE Group and Skandinaviska Enskilda 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 BE Group with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Group and Skandinaviska Enskilda.
Diversification Opportunities for BE Group and Skandinaviska Enskilda
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between BEGR and Skandinaviska is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding BE Group AB and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and BE Group 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 BE Group AB are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of BE Group i.e., BE Group and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between BE Group and Skandinaviska Enskilda
Assuming the 90 days trading horizon BE Group AB is expected to under-perform the Skandinaviska Enskilda. In addition to that, BE Group is 1.76 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.16 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.07 per unit of volatility. If you would invest 15,280 in Skandinaviska Enskilda Banken on September 19, 2024 and sell it today you would earn a total of 180.00 from holding Skandinaviska Enskilda Banken or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BE Group AB vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| BE Group AB |
| Skandinaviska Enskilda |
BE Group and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Group and Skandinaviska Enskilda
The main advantage of trading using opposite BE Group and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Group position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| BE Group vs. Skandinaviska Enskilda Banken | BE Group vs. Skandinaviska Enskilda Banken | BE Group vs. Swedbank AB | BE Group vs. Svenska Handelsbanken AB |
| Skandinaviska Enskilda vs. Nordea Bank Abp | Skandinaviska Enskilda vs. Swedbank AB | Skandinaviska Enskilda vs. Avanza Bank Holding | Skandinaviska Enskilda vs. Arion banki hf |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |