Correlation Between Bravida Holding and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Bravida Holding 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 Bravida Holding and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bravida Holding AB and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Bravida Holding 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 Bravida Holding with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravida Holding and Skandinaviska Enskilda.
Diversification Opportunities for Bravida Holding and Skandinaviska Enskilda
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bravida and Skandinaviska is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bravida Holding 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 Bravida Holding 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 Bravida Holding 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 Bravida Holding i.e., Bravida Holding and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Bravida Holding and Skandinaviska Enskilda
Assuming the 90 days trading horizon Bravida Holding is expected to generate 2.56 times less return on investment than Skandinaviska Enskilda. In addition to that, Bravida Holding is 2.01 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.02 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.09 per unit of volatility. If you would invest 15,400 in Skandinaviska Enskilda Banken on September 13, 2024 and sell it today you would earn a total of 260.00 from holding Skandinaviska Enskilda Banken or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bravida Holding AB vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Bravida Holding AB |
| Skandinaviska Enskilda |
Bravida Holding and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bravida Holding and Skandinaviska Enskilda
The main advantage of trading using opposite Bravida Holding and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravida Holding 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.| Bravida Holding vs. Skandinaviska Enskilda Banken | Bravida Holding vs. Skandinaviska Enskilda Banken | Bravida Holding vs. Swedbank AB | Bravida Holding vs. Svenska Handelsbanken AB |
| Skandinaviska Enskilda vs. MTI Investment SE | Skandinaviska Enskilda vs. Beowulf Mining PLC | Skandinaviska Enskilda vs. Qleanair Holding AB | Skandinaviska Enskilda vs. Indutrade 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |