Correlation Between Pioneer Floating and Swedbank
Can any of the company-specific risk be diversified away by investing in both Pioneer Floating and Swedbank 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 Pioneer Floating and Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Floating Rate and Swedbank AB, you can compare the effects of market volatilities on Pioneer Floating and Swedbank 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 Pioneer Floating with a short position of Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Floating and Swedbank.
Diversification Opportunities for Pioneer Floating and Swedbank
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pioneer and Swedbank is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Floating Rate and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB and Pioneer Floating 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 Pioneer Floating Rate are associated (or correlated) with Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of Pioneer Floating i.e., Pioneer Floating and Swedbank go up and down completely randomly.
Pair Corralation between Pioneer Floating and Swedbank
Considering the 90-day investment horizon Pioneer Floating Rate is expected to generate 0.25 times more return on investment than Swedbank. However, Pioneer Floating Rate is 3.93 times less risky than Swedbank. It trades about 0.12 of its potential returns per unit of risk. Swedbank AB is currently generating about -0.24 per unit of risk. If you would invest 974.00 in Pioneer Floating Rate on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Pioneer Floating Rate or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneer Floating Rate vs. Swedbank AB
Performance |
| Timeline |
| Pioneer Floating Rate |
| Swedbank AB |
Pioneer Floating and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Floating and Swedbank
The main advantage of trading using opposite Pioneer Floating and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Floating position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank's long position.| Pioneer Floating vs. Blackrock Floating Rate | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Blackrock Debt Strategies |
| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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