Correlation Between Norva24 Group and Swedencare Publ
Can any of the company-specific risk be diversified away by investing in both Norva24 Group and Swedencare Publ 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 Norva24 Group and Swedencare Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Norva24 Group AB and Swedencare publ AB, you can compare the effects of market volatilities on Norva24 Group and Swedencare Publ 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 Norva24 Group with a short position of Swedencare Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norva24 Group and Swedencare Publ.
Diversification Opportunities for Norva24 Group and Swedencare Publ
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Norva24 and Swedencare is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Norva24 Group AB and Swedencare publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedencare publ AB and Norva24 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 Norva24 Group AB are associated (or correlated) with Swedencare Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedencare publ AB has no effect on the direction of Norva24 Group i.e., Norva24 Group and Swedencare Publ go up and down completely randomly.
Pair Corralation between Norva24 Group and Swedencare Publ
Assuming the 90 days trading horizon Norva24 Group AB is expected to under-perform the Swedencare Publ. But the stock apears to be less risky and, when comparing its historical volatility, Norva24 Group AB is 1.3 times less risky than Swedencare Publ. The stock trades about -0.01 of its potential returns per unit of risk. The Swedencare publ AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,571 in Swedencare publ AB on November 27, 2024 and sell it today you would earn a total of 1,979 from holding Swedencare publ AB or generate 76.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norva24 Group AB vs. Swedencare publ AB
Performance |
| Timeline |
| Norva24 Group AB |
| Swedencare publ AB |
Norva24 Group and Swedencare Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norva24 Group and Swedencare Publ
The main advantage of trading using opposite Norva24 Group and Swedencare Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norva24 Group position performs unexpectedly, Swedencare Publ 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 Swedencare Publ will offset losses from the drop in Swedencare Publ's long position.| Norva24 Group vs. Fasadgruppen Group AB | Norva24 Group vs. Green Landscaping Group | Norva24 Group vs. Volati AB | Norva24 Group vs. Instalco Intressenter AB |
| Swedencare Publ vs. TF Bank AB | Swedencare Publ vs. Indutrade AB | Swedencare Publ vs. Svenska Handelsbanken AB | Swedencare Publ vs. Vitec Software Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |