Correlation Between Sdiptech and KABE Group
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By analyzing existing cross correlation between Sdiptech AB and KABE Group AB, you can compare the effects of market volatilities on Sdiptech and KABE 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 Sdiptech with a short position of KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and KABE Group.
Diversification Opportunities for Sdiptech and KABE Group
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sdiptech and KABE is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group AB and Sdiptech 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 Sdiptech AB are associated (or correlated) with KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Sdiptech i.e., Sdiptech and KABE Group go up and down completely randomly.
Pair Corralation between Sdiptech and KABE Group
Assuming the 90 days trading horizon Sdiptech AB is expected to generate 0.25 times more return on investment than KABE Group. However, Sdiptech AB is 3.95 times less risky than KABE Group. It trades about -0.03 of its potential returns per unit of risk. KABE Group AB is currently generating about -0.09 per unit of risk. If you would invest 12,350 in Sdiptech AB on September 1, 2024 and sell it today you would lose (50.00) from holding Sdiptech AB or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. KABE Group AB
Performance |
| Timeline |
| Sdiptech AB |
| KABE Group AB |
Sdiptech and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and KABE Group
The main advantage of trading using opposite Sdiptech and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, KABE 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 KABE Group will offset losses from the drop in KABE Group's long position.| Sdiptech vs. Bergman Beving AB | Sdiptech vs. FM Mattsson Mora | Sdiptech vs. Systemair AB | Sdiptech vs. Garo AB |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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