Correlation Between SBB-D and Byggmstare Anders
Can any of the company-specific risk be diversified away by investing in both SBB-D and Byggmstare Anders 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-D and Byggmstare Anders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhaellsbyggnadsbolaget i Norden and Byggmstare Anders J, you can compare the effects of market volatilities on SBB-D and Byggmstare Anders 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-D with a short position of Byggmstare Anders. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-D and Byggmstare Anders.
Diversification Opportunities for SBB-D and Byggmstare Anders
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBB-D and Byggmstare is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samhaellsbyggnadsbolaget i Nor and Byggmstare Anders J in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmstare Anders and SBB-D 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 Samhaellsbyggnadsbolaget i Norden are associated (or correlated) with Byggmstare Anders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmstare Anders has no effect on the direction of SBB-D i.e., SBB-D and Byggmstare Anders go up and down completely randomly.
Pair Corralation between SBB-D and Byggmstare Anders
Assuming the 90 days trading horizon Samhaellsbyggnadsbolaget i Norden is expected to under-perform the Byggmstare Anders. In addition to that, SBB-D is 6.26 times more volatile than Byggmstare Anders J. It trades about -0.26 of its total potential returns per unit of risk. Byggmstare Anders J is currently generating about -0.04 per unit of volatility. If you would invest 26,300 in Byggmstare Anders J on September 1, 2024 and sell it today you would lose (300.00) from holding Byggmstare Anders J or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samhaellsbyggnadsbolaget i Nor vs. Byggmstare Anders J
Performance |
| Timeline |
| Samhaellsbyggnadsbol |
| Byggmstare Anders |
SBB-D and Byggmstare Anders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBB-D and Byggmstare Anders
The main advantage of trading using opposite SBB-D and Byggmstare Anders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-D position performs unexpectedly, Byggmstare Anders 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 Byggmstare Anders will offset losses from the drop in Byggmstare Anders' long position.| SBB-D vs. Samhllsbyggnadsbolaget i Norden | SBB-D vs. Castellum AB | SBB-D vs. Cibus Nordic Real | SBB-D vs. AB Sagax |
| Byggmstare Anders vs. Creades AB | Byggmstare Anders vs. ALM Equity AB | Byggmstare Anders vs. Brinova Fastigheter AB | Byggmstare Anders vs. Awardit 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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