Correlation Between SBB-B and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both SBB-B and Flexion Mobile 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 SBB-B and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhllsbyggnadsbolaget i Norden and Flexion Mobile PLC, you can compare the effects of market volatilities on SBB-B and Flexion Mobile 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 SBB-B with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-B and Flexion Mobile.
Diversification Opportunities for SBB-B and Flexion Mobile
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBB-B and Flexion is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Samhllsbyggnadsbolaget i Norde and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and SBB-B 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 Samhllsbyggnadsbolaget i Norden are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of SBB-B i.e., SBB-B and Flexion Mobile go up and down completely randomly.
Pair Corralation between SBB-B and Flexion Mobile
Assuming the 90 days trading horizon SBB-B is expected to generate 1.47 times less return on investment than Flexion Mobile. In addition to that, SBB-B is 3.48 times more volatile than Flexion Mobile PLC. It trades about 0.03 of its total potential returns per unit of risk. Flexion Mobile PLC is currently generating about 0.18 per unit of volatility. If you would invest 700.00 in Flexion Mobile PLC on September 24, 2024 and sell it today you would earn a total of 50.00 from holding Flexion Mobile PLC or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhllsbyggnadsbolaget i Norde vs. Flexion Mobile PLC
Performance |
| Timeline |
| Samhllsbyggnadsbolaget |
| Flexion Mobile PLC |
SBB-B and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBB-B and Flexion Mobile
The main advantage of trading using opposite SBB-B and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-B position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.The idea behind Samhllsbyggnadsbolaget i Norden and Flexion Mobile PLC 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.| Flexion Mobile vs. Samhllsbyggnadsbolaget i Norden | Flexion Mobile vs. Sinch AB | Flexion Mobile vs. Zaptec AS | Flexion Mobile vs. Evolution 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |