Correlation Between FM Mattsson and Sdiptech
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By analyzing existing cross correlation between FM Mattsson Mora and Sdiptech AB, you can compare the effects of market volatilities on FM Mattsson and Sdiptech 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 FM Mattsson with a short position of Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Sdiptech.
Diversification Opportunities for FM Mattsson and Sdiptech
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FMM-B and Sdiptech is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech AB and FM Mattsson 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 FM Mattsson Mora are associated (or correlated) with Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of FM Mattsson i.e., FM Mattsson and Sdiptech go up and down completely randomly.
Pair Corralation between FM Mattsson and Sdiptech
Assuming the 90 days trading horizon FM Mattsson Mora is expected to generate 2.54 times more return on investment than Sdiptech. However, FM Mattsson is 2.54 times more volatile than Sdiptech AB. It trades about 0.02 of its potential returns per unit of risk. Sdiptech AB is currently generating about 0.05 per unit of risk. If you would invest 5,136 in FM Mattsson Mora on September 3, 2024 and sell it today you would earn a total of 144.00 from holding FM Mattsson Mora or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FM Mattsson Mora vs. Sdiptech AB
Performance |
| Timeline |
| FM Mattsson Mora |
| Sdiptech AB |
FM Mattsson and Sdiptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FM Mattsson and Sdiptech
The main advantage of trading using opposite FM Mattsson and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech's long position.| FM Mattsson vs. Nordic Waterproofing Holding | FM Mattsson vs. Bufab Holding AB | FM Mattsson vs. Garo AB | FM Mattsson vs. Inwido AB |
| Sdiptech vs. Sdiptech AB | Sdiptech vs. AB Sagax | Sdiptech vs. Corem Property Group | Sdiptech vs. Volati 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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