Correlation Between Embracer Group and SBB-B
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By analyzing existing cross correlation between Embracer Group AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Embracer Group 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 Embracer Group with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and SBB-B.
Diversification Opportunities for Embracer Group and SBB-B
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Embracer and SBB-B is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Embracer Group 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 Embracer Group 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 Embracer Group i.e., Embracer Group and SBB-B go up and down completely randomly.
Pair Corralation between Embracer Group and SBB-B
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.66 times more return on investment than SBB-B. However, Embracer Group AB is 1.52 times less risky than SBB-B. It trades about 0.06 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 16,356 in Embracer Group AB on October 26, 2024 and sell it today you would earn a total of 3,294 from holding Embracer Group AB or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Embracer Group AB |
| Samhllsbyggnadsbolaget |
Embracer Group and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and SBB-B
The main advantage of trading using opposite Embracer Group and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group 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.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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