Correlation Between Israel Discount and Swedbank
Can any of the company-specific risk be diversified away by investing in both Israel Discount and Swedbank 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 Israel Discount and Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel Discount Bank and Swedbank AB, you can compare the effects of market volatilities on Israel Discount and Swedbank 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 Israel Discount with a short position of Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Discount and Swedbank.
Diversification Opportunities for Israel Discount and Swedbank
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Israel and Swedbank is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Israel Discount Bank and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB and Israel Discount 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 Israel Discount Bank are associated (or correlated) with Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of Israel Discount i.e., Israel Discount and Swedbank go up and down completely randomly.
Pair Corralation between Israel Discount and Swedbank
Assuming the 90 days horizon Israel Discount is expected to generate 1.3 times less return on investment than Swedbank. In addition to that, Israel Discount is 2.01 times more volatile than Swedbank AB. It trades about 0.07 of its total potential returns per unit of risk. Swedbank AB is currently generating about 0.17 per unit of volatility. If you would invest 1,973 in Swedbank AB on November 2, 2024 and sell it today you would earn a total of 198.00 from holding Swedbank AB or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Israel Discount Bank vs. Swedbank AB
Performance |
| Timeline |
| Israel Discount Bank |
| Swedbank AB |
Israel Discount and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel Discount and Swedbank
The main advantage of trading using opposite Israel Discount and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Discount position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank's long position.| Israel Discount vs. Baraboo Bancorporation | Israel Discount vs. Schweizerische Nationalbank | Israel Discount vs. Danske Bank AS | Israel Discount vs. Absa Group Limited |
| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |