Correlation Between SBB-B and Kindred Group
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By analyzing existing cross correlation between Samhllsbyggnadsbolaget i Norden and Kindred Group plc, you can compare the effects of market volatilities on SBB-B and Kindred Group 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 Kindred Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-B and Kindred Group.
Diversification Opportunities for SBB-B and Kindred Group
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBB-B and Kindred is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Samhllsbyggnadsbolaget i Norde and Kindred Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindred Group 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 Kindred Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindred Group plc has no effect on the direction of SBB-B i.e., SBB-B and Kindred Group go up and down completely randomly.
Pair Corralation between SBB-B and Kindred Group
Assuming the 90 days trading horizon Samhllsbyggnadsbolaget i Norden is expected to under-perform the Kindred Group. In addition to that, SBB-B is 3.34 times more volatile than Kindred Group plc. It trades about -0.02 of its total potential returns per unit of risk. Kindred Group plc is currently generating about 0.02 per unit of volatility. If you would invest 11,375 in Kindred Group plc on September 3, 2024 and sell it today you would earn a total of 1,535 from holding Kindred Group plc or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.19% |
| Values | Daily Returns |
Samhllsbyggnadsbolaget i Norde vs. Kindred Group plc
Performance |
| Timeline |
| Samhllsbyggnadsbolaget |
| Kindred Group plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
SBB-B and Kindred Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBB-B and Kindred Group
The main advantage of trading using opposite SBB-B and Kindred Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-B position performs unexpectedly, Kindred Group 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 Kindred Group will offset losses from the drop in Kindred Group's long position.The idea behind Samhllsbyggnadsbolaget i Norden and Kindred Group 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.| Kindred Group vs. Kambi Group PLC | Kindred Group vs. Betsson AB | Kindred Group vs. Evolution AB | Kindred Group vs. Embracer Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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