Correlation Between Batm Advanced and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Batm Advanced 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 Batm Advanced and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Batm Advanced 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 Batm Advanced with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Skandinaviska Enskilda.
Diversification Opportunities for Batm Advanced and Skandinaviska Enskilda
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Batm and Skandinaviska is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and Batm Advanced 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 Batm Advanced Communications 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 Batm Advanced i.e., Batm Advanced and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Batm Advanced and Skandinaviska Enskilda
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Skandinaviska Enskilda. In addition to that, Batm Advanced is 2.0 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.03 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.05 per unit of volatility. If you would invest 12,159 in Skandinaviska Enskilda Banken on September 2, 2024 and sell it today you would earn a total of 3,181 from holding Skandinaviska Enskilda Banken or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.35% |
| Values | Daily Returns |
Batm Advanced Communications vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Batm Advanced Commun |
| Skandinaviska Enskilda |
Batm Advanced and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Skandinaviska Enskilda
The main advantage of trading using opposite Batm Advanced and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced 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.| Batm Advanced vs. Alaska Air Group | Batm Advanced vs. Delta Air Lines | Batm Advanced vs. Silvercorp Metals | Batm Advanced vs. Greenroc Mining PLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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