Correlation Between KABE Group and Scandinavian ChemoTech
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By analyzing existing cross correlation between KABE Group AB and Scandinavian ChemoTech AB, you can compare the effects of market volatilities on KABE Group and Scandinavian ChemoTech 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 KABE Group with a short position of Scandinavian ChemoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Scandinavian ChemoTech.
Diversification Opportunities for KABE Group and Scandinavian ChemoTech
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KABE and Scandinavian is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Scandinavian ChemoTech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian ChemoTech and KABE Group 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 KABE Group AB are associated (or correlated) with Scandinavian ChemoTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian ChemoTech has no effect on the direction of KABE Group i.e., KABE Group and Scandinavian ChemoTech go up and down completely randomly.
Pair Corralation between KABE Group and Scandinavian ChemoTech
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.33 times more return on investment than Scandinavian ChemoTech. However, KABE Group AB is 3.06 times less risky than Scandinavian ChemoTech. It trades about 0.05 of its potential returns per unit of risk. Scandinavian ChemoTech AB is currently generating about -0.02 per unit of risk. If you would invest 19,087 in KABE Group AB on September 4, 2024 and sell it today you would earn a total of 10,413 from holding KABE Group AB or generate 54.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Scandinavian ChemoTech AB
Performance |
| Timeline |
| KABE Group AB |
| Scandinavian ChemoTech |
KABE Group and Scandinavian ChemoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Scandinavian ChemoTech
The main advantage of trading using opposite KABE Group and Scandinavian ChemoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Scandinavian ChemoTech 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 Scandinavian ChemoTech will offset losses from the drop in Scandinavian ChemoTech's long position.| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
| Scandinavian ChemoTech vs. Simris Alg AB | Scandinavian ChemoTech vs. Immunovia publ AB | Scandinavian ChemoTech vs. Sedana Medical AB | Scandinavian ChemoTech vs. KABE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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