Correlation Between Maven Wireless and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Skandinaviska Enskilda 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 Maven Wireless and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Maven Wireless and Skandinaviska Enskilda 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 Maven Wireless with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Skandinaviska Enskilda.
Diversification Opportunities for Maven Wireless and Skandinaviska Enskilda
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maven and Skandinaviska is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Maven Wireless i.e., Maven Wireless and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Maven Wireless and Skandinaviska Enskilda
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to under-perform the Skandinaviska Enskilda. In addition to that, Maven Wireless is 2.39 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.15 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about -0.1 per unit of volatility. If you would invest 15,440 in Skandinaviska Enskilda Banken on August 29, 2024 and sell it today you would lose (420.00) from holding Skandinaviska Enskilda Banken or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Maven Wireless Sweden |
| Skandinaviska Enskilda |
Maven Wireless and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Skandinaviska Enskilda
The main advantage of trading using opposite Maven Wireless and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Maven Wireless vs. Lidds AB | Maven Wireless vs. Serstech AB | Maven Wireless vs. Transtema Group AB | Maven Wireless vs. Enorama Pharma AB |
| Skandinaviska Enskilda vs. SaltX Technology Holding | Skandinaviska Enskilda vs. Investment AB Oresund | Skandinaviska Enskilda vs. Raketech Group Holding | Skandinaviska Enskilda vs. JLT Mobile Computers |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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