Correlation Between Midsummer and Soder Sportfiske
Can any of the company-specific risk be diversified away by investing in both Midsummer 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 Midsummer and Soder Sportfiske into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midsummer AB and Soder Sportfiske AB, you can compare the effects of market volatilities on Midsummer 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 Midsummer with a short position of Soder Sportfiske. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midsummer and Soder Sportfiske.
Diversification Opportunities for Midsummer and Soder Sportfiske
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Midsummer and Soder is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Midsummer 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 Midsummer 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 Midsummer 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 Midsummer i.e., Midsummer and Soder Sportfiske go up and down completely randomly.
Pair Corralation between Midsummer and Soder Sportfiske
Assuming the 90 days trading horizon Midsummer AB is expected to generate 1.29 times more return on investment than Soder Sportfiske. However, Midsummer is 1.29 times more volatile than Soder Sportfiske AB. It trades about 0.09 of its potential returns per unit of risk. Soder Sportfiske AB is currently generating about 0.0 per unit of risk. If you would invest 107.00 in Midsummer AB on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Midsummer AB or generate 23.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Midsummer AB vs. Soder Sportfiske AB
Performance |
| Timeline |
| Midsummer AB |
| Soder Sportfiske |
Midsummer and Soder Sportfiske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midsummer and Soder Sportfiske
The main advantage of trading using opposite Midsummer and Soder Sportfiske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midsummer 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.| Midsummer vs. Soder Sportfiske AB | Midsummer vs. USWE Sports AB | Midsummer vs. Lime Technologies AB | Midsummer vs. SolTech Energy Sweden |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |