Correlation Between Essity AB and Zinzino AB
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By analyzing existing cross correlation between Essity AB and Zinzino AB Series, you can compare the effects of market volatilities on Essity AB and Zinzino AB 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 Essity AB with a short position of Zinzino AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Zinzino AB.
Diversification Opportunities for Essity AB and Zinzino AB
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Essity and Zinzino is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Essity AB and Zinzino AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinzino AB Series and Essity AB 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 Essity AB are associated (or correlated) with Zinzino AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinzino AB Series has no effect on the direction of Essity AB i.e., Essity AB and Zinzino AB go up and down completely randomly.
Pair Corralation between Essity AB and Zinzino AB
Assuming the 90 days trading horizon Essity AB is expected to generate 0.5 times more return on investment than Zinzino AB. However, Essity AB is 2.01 times less risky than Zinzino AB. It trades about 0.11 of its potential returns per unit of risk. Zinzino AB Series is currently generating about 0.04 per unit of risk. If you would invest 23,770 in Essity AB on September 1, 2024 and sell it today you would earn a total of 6,580 from holding Essity AB or generate 27.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Essity AB vs. Zinzino AB Series
Performance |
| Timeline |
| Essity AB |
| Zinzino AB Series |
Essity AB and Zinzino AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essity AB and Zinzino AB
The main advantage of trading using opposite Essity AB and Zinzino AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity AB position performs unexpectedly, Zinzino AB 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 Zinzino AB will offset losses from the drop in Zinzino AB's long position.| Essity AB vs. Essity AB | Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. Industrivarden AB ser | Essity AB vs. Svenska Cellulosa Aktiebolaget |
| Zinzino AB vs. eWork Group AB | Zinzino AB vs. Softronic AB | Zinzino AB vs. Niloerngruppen AB Series | Zinzino AB vs. Transtema 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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