Correlation Between Essity AB and Trelleborg
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By analyzing existing cross correlation between Essity AB and Trelleborg AB, you can compare the effects of market volatilities on Essity AB and Trelleborg 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 Trelleborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Trelleborg.
Diversification Opportunities for Essity AB and Trelleborg
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Essity and Trelleborg is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Essity AB and Trelleborg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trelleborg AB 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 Trelleborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trelleborg AB has no effect on the direction of Essity AB i.e., Essity AB and Trelleborg go up and down completely randomly.
Pair Corralation between Essity AB and Trelleborg
Assuming the 90 days trading horizon Essity AB is expected to under-perform the Trelleborg. In addition to that, Essity AB is 1.37 times more volatile than Trelleborg AB. It trades about -0.14 of its total potential returns per unit of risk. Trelleborg AB is currently generating about 0.33 per unit of volatility. If you would invest 38,300 in Trelleborg AB on November 3, 2024 and sell it today you would earn a total of 3,600 from holding Trelleborg AB or generate 9.4% 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. Trelleborg AB
Performance |
| Timeline |
| Essity AB |
| Trelleborg AB |
Essity AB and Trelleborg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essity AB and Trelleborg
The main advantage of trading using opposite Essity AB and Trelleborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity AB position performs unexpectedly, Trelleborg 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 Trelleborg will offset losses from the drop in Trelleborg'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 |
| Trelleborg vs. AB SKF | Trelleborg vs. Sandvik AB | Trelleborg vs. Alfa Laval AB | Trelleborg vs. Husqvarna 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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