Correlation Between SEB SA and Sleep Number
Can any of the company-specific risk be diversified away by investing in both SEB SA and Sleep Number 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 SEB SA and Sleep Number into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEB SA and Sleep Number Corp, you can compare the effects of market volatilities on SEB SA and Sleep Number 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 SEB SA with a short position of Sleep Number. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEB SA and Sleep Number.
Diversification Opportunities for SEB SA and Sleep Number
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEB and Sleep is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEB SA and Sleep Number Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sleep Number Corp and SEB SA 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 SEB SA are associated (or correlated) with Sleep Number. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sleep Number Corp has no effect on the direction of SEB SA i.e., SEB SA and Sleep Number go up and down completely randomly.
Pair Corralation between SEB SA and Sleep Number
If you would invest 9,385 in SEB SA on September 13, 2024 and sell it today you would earn a total of 85.00 from holding SEB SA or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SEB SA vs. Sleep Number Corp
Performance |
| Timeline |
| SEB SA |
| Sleep Number Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEB SA and Sleep Number Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEB SA and Sleep Number
The main advantage of trading using opposite SEB SA and Sleep Number positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEB SA position performs unexpectedly, Sleep Number 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 Sleep Number will offset losses from the drop in Sleep Number's long position.| SEB SA vs. Ryanair Holdings plc | SEB SA vs. Flutter Entertainment PLC | SEB SA vs. LG Display Co | SEB SA vs. FORWARD AIR P |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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