Correlation Between COOR Service and SBB-B
Can any of the company-specific risk be diversified away by investing in both COOR Service 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 COOR Service and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COOR Service Management and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on COOR Service 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 COOR Service with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of COOR Service and SBB-B.
Diversification Opportunities for COOR Service and SBB-B
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COOR and SBB-B is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding COOR Service Management and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and COOR Service 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 COOR Service Management 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 COOR Service i.e., COOR Service and SBB-B go up and down completely randomly.
Pair Corralation between COOR Service and SBB-B
Assuming the 90 days trading horizon COOR Service Management is expected to generate 0.44 times more return on investment than SBB-B. However, COOR Service Management is 2.28 times less risky than SBB-B. It trades about 0.23 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.38 per unit of risk. If you would invest 3,128 in COOR Service Management on December 1, 2024 and sell it today you would earn a total of 252.00 from holding COOR Service Management or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COOR Service Management vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| COOR Service Management |
| Samhllsbyggnadsbolaget |
COOR Service and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COOR Service and SBB-B
The main advantage of trading using opposite COOR Service and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COOR Service 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.| COOR Service vs. Inwido AB | COOR Service vs. Cloetta AB | COOR Service vs. Clas Ohlson AB | COOR Service vs. Bufab Holding 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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