Correlation Between Online Brands and Scandinavian ChemoTech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Online Brands and Scandinavian ChemoTech 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 Online Brands and Scandinavian ChemoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Online Brands Nordic and Scandinavian ChemoTech AB, you can compare the effects of market volatilities on Online Brands 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 Online Brands with a short position of Scandinavian ChemoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and Scandinavian ChemoTech.

Diversification Opportunities for Online Brands and Scandinavian ChemoTech

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Online and Scandinavian is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and Scandinavian ChemoTech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian ChemoTech and Online Brands 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 Online Brands Nordic 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 Online Brands i.e., Online Brands and Scandinavian ChemoTech go up and down completely randomly.

Pair Corralation between Online Brands and Scandinavian ChemoTech

Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 0.7 times more return on investment than Scandinavian ChemoTech. However, Online Brands Nordic is 1.42 times less risky than Scandinavian ChemoTech. It trades about -0.04 of its potential returns per unit of risk. Scandinavian ChemoTech AB is currently generating about -0.18 per unit of risk. If you would invest  1,615  in Online Brands Nordic on November 30, 2024 and sell it today you would lose (115.00) from holding Online Brands Nordic or give up 7.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Online Brands Nordic  vs.  Scandinavian ChemoTech AB

 Performance 
       Timeline  
Online Brands Nordic 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Online Brands Nordic are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Online Brands unveiled solid returns over the last few months and may actually be approaching a breakup point.
Scandinavian ChemoTech 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Scandinavian ChemoTech AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Online Brands and Scandinavian ChemoTech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Online Brands and Scandinavian ChemoTech

The main advantage of trading using opposite Online Brands and Scandinavian ChemoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Online Brands 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.
Online Brands vs. NetJobs Group AB
Online Brands vs. Mantex AB
Online Brands vs. Doxa AB
Online Brands vs. Clean Motion AB
The idea behind Online Brands Nordic and Scandinavian ChemoTech AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Scandinavian ChemoTech vs. Vicore Pharma Holding
Scandinavian ChemoTech vs. Enorama Pharma AB
Scandinavian ChemoTech vs. Xintela AB
Scandinavian ChemoTech vs. Alzinova 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
FinTech Suite
Use AI to screen and filter profitable investment opportunities
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
CEOs Directory
Screen CEOs from public companies around the world


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY