Correlation Between Generic Sweden and Zinzino AB
Can any of the company-specific risk be diversified away by investing in both Generic Sweden and Zinzino AB 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 Generic Sweden and Zinzino AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generic Sweden publ and Zinzino AB Series, you can compare the effects of market volatilities on Generic Sweden 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 Generic Sweden with a short position of Zinzino AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generic Sweden and Zinzino AB.
Diversification Opportunities for Generic Sweden and Zinzino AB
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Generic and Zinzino is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Generic Sweden publ 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 Generic Sweden 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 Generic Sweden publ 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 Generic Sweden i.e., Generic Sweden and Zinzino AB go up and down completely randomly.
Pair Corralation between Generic Sweden and Zinzino AB
Assuming the 90 days trading horizon Generic Sweden publ is expected to generate 0.66 times more return on investment than Zinzino AB. However, Generic Sweden publ is 1.52 times less risky than Zinzino AB. It trades about 0.15 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 4,560 in Generic Sweden publ on August 30, 2024 and sell it today you would earn a total of 580.00 from holding Generic Sweden publ or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generic Sweden publ vs. Zinzino AB Series
Performance |
| Timeline |
| Generic Sweden publ |
| Zinzino AB Series |
Generic Sweden and Zinzino AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generic Sweden and Zinzino AB
The main advantage of trading using opposite Generic Sweden and Zinzino AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generic Sweden 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.| Generic Sweden vs. FormPipe Software AB | Generic Sweden vs. Novotek AB | Generic Sweden vs. Hanza AB | Generic Sweden vs. Genovis AB |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |