Correlation Between Intrum Justitia and Svedbergs
Can any of the company-specific risk be diversified away by investing in both Intrum Justitia and Svedbergs 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 Intrum Justitia and Svedbergs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrum Justitia AB and Svedbergs i Dalstorp, you can compare the effects of market volatilities on Intrum Justitia and Svedbergs 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 Intrum Justitia with a short position of Svedbergs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrum Justitia and Svedbergs.
Diversification Opportunities for Intrum Justitia and Svedbergs
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intrum and Svedbergs is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intrum Justitia AB and Svedbergs i Dalstorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svedbergs i Dalstorp and Intrum Justitia 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 Intrum Justitia AB are associated (or correlated) with Svedbergs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svedbergs i Dalstorp has no effect on the direction of Intrum Justitia i.e., Intrum Justitia and Svedbergs go up and down completely randomly.
Pair Corralation between Intrum Justitia and Svedbergs
Assuming the 90 days trading horizon Intrum Justitia AB is expected to under-perform the Svedbergs. In addition to that, Intrum Justitia is 2.84 times more volatile than Svedbergs i Dalstorp. It trades about -0.12 of its total potential returns per unit of risk. Svedbergs i Dalstorp is currently generating about -0.24 per unit of volatility. If you would invest 4,650 in Svedbergs i Dalstorp on August 31, 2024 and sell it today you would lose (440.00) from holding Svedbergs i Dalstorp or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intrum Justitia AB vs. Svedbergs i Dalstorp
Performance |
| Timeline |
| Intrum Justitia AB |
| Svedbergs i Dalstorp |
Intrum Justitia and Svedbergs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrum Justitia and Svedbergs
The main advantage of trading using opposite Intrum Justitia and Svedbergs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrum Justitia position performs unexpectedly, Svedbergs 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 Svedbergs will offset losses from the drop in Svedbergs' long position.| Intrum Justitia vs. Tele2 AB | Intrum Justitia vs. Castellum AB | Intrum Justitia vs. Telia Company AB | Intrum Justitia vs. Svenska Handelsbanken AB |
| Svedbergs vs. Systemair AB | Svedbergs vs. Softronic AB | Svedbergs vs. Inwido AB | Svedbergs vs. Lindab International 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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