Correlation Between Corline Biomedical and Swedbank
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical 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 Corline Biomedical and Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Swedbank AB, you can compare the effects of market volatilities on Corline Biomedical 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 Corline Biomedical with a short position of Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Swedbank.
Diversification Opportunities for Corline Biomedical and Swedbank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Corline and Swedbank is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB and Corline Biomedical 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 Corline Biomedical AB 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 Corline Biomedical i.e., Corline Biomedical and Swedbank go up and down completely randomly.
Pair Corralation between Corline Biomedical and Swedbank
Assuming the 90 days trading horizon Corline Biomedical AB is expected to under-perform the Swedbank. In addition to that, Corline Biomedical is 2.58 times more volatile than Swedbank AB. It trades about -0.06 of its total potential returns per unit of risk. Swedbank AB is currently generating about 0.0 per unit of volatility. If you would invest 21,740 in Swedbank AB on September 3, 2024 and sell it today you would lose (360.00) from holding Swedbank AB or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corline Biomedical AB vs. Swedbank AB
Performance |
| Timeline |
| Corline Biomedical |
| Swedbank AB |
Corline Biomedical and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Swedbank
The main advantage of trading using opposite Corline Biomedical and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical 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.| Corline Biomedical vs. Simris Alg AB | Corline Biomedical vs. Immunovia publ AB | Corline Biomedical vs. Sedana Medical AB | Corline Biomedical vs. KABE Group AB |
| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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