Correlation Between SBB-B and Simris Alg
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By analyzing existing cross correlation between Samhllsbyggnadsbolaget i Norden and Simris Alg AB, you can compare the effects of market volatilities on SBB-B and Simris Alg 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 Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-B and Simris Alg.
Diversification Opportunities for SBB-B and Simris Alg
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SBB-B and Simris is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Samhllsbyggnadsbolaget i Norde and Simris Alg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simris Alg AB 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 Simris Alg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simris Alg AB has no effect on the direction of SBB-B i.e., SBB-B and Simris Alg go up and down completely randomly.
Pair Corralation between SBB-B and Simris Alg
Assuming the 90 days trading horizon SBB-B is expected to generate 1.3 times less return on investment than Simris Alg. But when comparing it to its historical volatility, Samhllsbyggnadsbolaget i Norden is 1.9 times less risky than Simris Alg. It trades about 0.05 of its potential returns per unit of risk. Simris Alg AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Simris Alg AB on December 4, 2024 and sell it today you would lose (0.88) from holding Simris Alg AB or give up 8.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhllsbyggnadsbolaget i Norde vs. Simris Alg AB
Performance |
| Timeline |
| Samhllsbyggnadsbolaget |
| Simris Alg AB |
SBB-B and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBB-B and Simris Alg
The main advantage of trading using opposite SBB-B and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-B position performs unexpectedly, Simris Alg 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 Simris Alg will offset losses from the drop in Simris Alg's long position.The idea behind Samhllsbyggnadsbolaget i Norden and Simris Alg 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.| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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