Correlation Between Boliden AB and SBB-B
Can any of the company-specific risk be diversified away by investing in both Boliden AB and SBB-B 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 Boliden AB and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boliden AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Boliden AB and SBB-B 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 Boliden AB with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boliden AB and SBB-B.
Diversification Opportunities for Boliden AB and SBB-B
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boliden and SBB-B is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Boliden AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Boliden AB 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 Boliden AB are associated (or correlated) with SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Boliden AB i.e., Boliden AB and SBB-B go up and down completely randomly.
Pair Corralation between Boliden AB and SBB-B
Assuming the 90 days trading horizon Boliden AB is expected to generate 0.39 times more return on investment than SBB-B. However, Boliden AB is 2.54 times less risky than SBB-B. It trades about 0.04 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.03 per unit of risk. If you would invest 31,880 in Boliden AB on October 26, 2024 and sell it today you would earn a total of 2,120 from holding Boliden AB or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boliden AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Boliden AB |
| Samhllsbyggnadsbolaget |
Boliden AB and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boliden AB and SBB-B
The main advantage of trading using opposite Boliden AB and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boliden AB position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.| Boliden AB vs. Sandvik AB | Boliden AB vs. AB SKF | Boliden AB vs. Alfa Laval AB | Boliden AB vs. AB Electrolux |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |