Correlation Between Essity AB and Getinge AB
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By analyzing existing cross correlation between Essity AB and Getinge AB ser, you can compare the effects of market volatilities on Essity AB and Getinge 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 Getinge AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Getinge AB.
Diversification Opportunities for Essity AB and Getinge AB
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Essity and Getinge is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Essity AB and Getinge AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getinge AB ser 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 Getinge AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getinge AB ser has no effect on the direction of Essity AB i.e., Essity AB and Getinge AB go up and down completely randomly.
Pair Corralation between Essity AB and Getinge AB
Assuming the 90 days trading horizon Essity AB is expected to generate 0.53 times more return on investment than Getinge AB. However, Essity AB is 1.89 times less risky than Getinge AB. It trades about 0.08 of its potential returns per unit of risk. Getinge AB ser is currently generating about 0.04 per unit of risk. If you would invest 23,157 in Essity AB on November 3, 2024 and sell it today you would earn a total of 4,933 from holding Essity AB or generate 21.3% 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. Getinge AB ser
Performance |
| Timeline |
| Essity AB |
| Getinge AB ser |
Essity AB and Getinge AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essity AB and Getinge AB
The main advantage of trading using opposite Essity AB and Getinge AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity AB position performs unexpectedly, Getinge 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 Getinge AB will offset losses from the drop in Getinge AB's long position.| Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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