Correlation Between Garo AB and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Garo AB and Skandinaviska Enskilda at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Garo AB and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garo AB and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Garo AB and Skandinaviska Enskilda 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 Garo AB with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garo AB and Skandinaviska Enskilda.
Diversification Opportunities for Garo AB and Skandinaviska Enskilda
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Garo and Skandinaviska is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Garo AB and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and Garo 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 Garo AB are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Garo AB i.e., Garo AB and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Garo AB and Skandinaviska Enskilda
Assuming the 90 days trading horizon Garo AB is expected to under-perform the Skandinaviska Enskilda. In addition to that, Garo AB is 2.0 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.07 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.4 per unit of volatility. If you would invest 15,960 in Skandinaviska Enskilda Banken on December 6, 2024 and sell it today you would earn a total of 2,040 from holding Skandinaviska Enskilda Banken or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garo AB vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Garo AB |
| Skandinaviska Enskilda |
Garo AB and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garo AB and Skandinaviska Enskilda
The main advantage of trading using opposite Garo AB and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garo AB position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Garo AB vs. Troax Group AB | Garo AB vs. NIBE Industrier AB | Garo AB vs. Hexatronic Group AB | Garo AB vs. Bufab Holding AB |
| Skandinaviska Enskilda vs. Qleanair Holding AB | Skandinaviska Enskilda vs. Systemair AB | Skandinaviska Enskilda vs. eEducation Albert AB | Skandinaviska Enskilda vs. Nordic Asia Investment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |