Correlation Between AB Sagax and SBB-D
Can any of the company-specific risk be diversified away by investing in both AB Sagax and SBB-D 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 AB Sagax and SBB-D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Sagax and Samhaellsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on AB Sagax and SBB-D 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 AB Sagax with a short position of SBB-D. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and SBB-D.
Diversification Opportunities for AB Sagax and SBB-D
Poor diversification
The 3 months correlation between SAGA-A and SBB-D is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Samhaellsbyggnadsbolaget i Nor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhaellsbyggnadsbol and AB Sagax 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 AB Sagax are associated (or correlated) with SBB-D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhaellsbyggnadsbol has no effect on the direction of AB Sagax i.e., AB Sagax and SBB-D go up and down completely randomly.
Pair Corralation between AB Sagax and SBB-D
Assuming the 90 days trading horizon AB Sagax is expected to generate 0.35 times more return on investment than SBB-D. However, AB Sagax is 2.82 times less risky than SBB-D. It trades about 0.01 of its potential returns per unit of risk. Samhaellsbyggnadsbolaget i Norden is currently generating about -0.01 per unit of risk. If you would invest 22,771 in AB Sagax on August 24, 2024 and sell it today you would earn a total of 729.00 from holding AB Sagax or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. Samhaellsbyggnadsbolaget i Nor
Performance |
| Timeline |
| AB Sagax |
| Samhaellsbyggnadsbol |
AB Sagax and SBB-D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and SBB-D
The main advantage of trading using opposite AB Sagax and SBB-D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, SBB-D 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 SBB-D will offset losses from the drop in SBB-D's long position.| AB Sagax vs. Fastighets AB Balder | AB Sagax vs. Nyfosa AB | AB Sagax vs. Dios Fastigheter AB | AB Sagax vs. Corem Property Group |
| SBB-D vs. Samhllsbyggnadsbolaget i Norden | SBB-D vs. Castellum AB | SBB-D vs. Cibus Nordic Real | SBB-D vs. AB Sagax |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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