Correlation Between Havsfrun Investment and Soder Sportfiske
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and Soder Sportfiske 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 Havsfrun Investment and Soder Sportfiske into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and Soder Sportfiske AB, you can compare the effects of market volatilities on Havsfrun Investment and Soder Sportfiske 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 Havsfrun Investment with a short position of Soder Sportfiske. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and Soder Sportfiske.
Diversification Opportunities for Havsfrun Investment and Soder Sportfiske
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Havsfrun and Soder is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and Soder Sportfiske AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soder Sportfiske and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with Soder Sportfiske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soder Sportfiske has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and Soder Sportfiske go up and down completely randomly.
Pair Corralation between Havsfrun Investment and Soder Sportfiske
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 1.18 times more return on investment than Soder Sportfiske. However, Havsfrun Investment is 1.18 times more volatile than Soder Sportfiske AB. It trades about -0.02 of its potential returns per unit of risk. Soder Sportfiske AB is currently generating about -0.03 per unit of risk. If you would invest 1,750 in Havsfrun Investment AB on November 28, 2024 and sell it today you would lose (90.00) from holding Havsfrun Investment AB or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. Soder Sportfiske AB
Performance |
| Timeline |
| Havsfrun Investment |
| Soder Sportfiske |
Havsfrun Investment and Soder Sportfiske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and Soder Sportfiske
The main advantage of trading using opposite Havsfrun Investment and Soder Sportfiske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, Soder Sportfiske 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 Soder Sportfiske will offset losses from the drop in Soder Sportfiske's long position.| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
| Soder Sportfiske vs. Truecaller AB | Soder Sportfiske vs. Dedicare AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. AddLife 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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