Correlation Between Sdiptech and Skandinaviska Enskilda
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By analyzing existing cross correlation between Sdiptech AB and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Sdiptech and Skandinaviska Enskilda 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 Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Skandinaviska Enskilda.
Diversification Opportunities for Sdiptech and Skandinaviska Enskilda
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sdiptech and Skandinaviska is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Sdiptech i.e., Sdiptech and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Sdiptech and Skandinaviska Enskilda
Assuming the 90 days trading horizon Sdiptech AB is expected to under-perform the Skandinaviska Enskilda. But the stock apears to be less risky and, when comparing its historical volatility, Sdiptech AB is 1.92 times less risky than Skandinaviska Enskilda. The stock trades about -0.13 of its potential returns per unit of risk. The Skandinaviska Enskilda Banken is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 15,440 in Skandinaviska Enskilda Banken on August 28, 2024 and sell it today you would lose (260.00) from holding Skandinaviska Enskilda Banken or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Sdiptech AB |
| Skandinaviska Enskilda |
Sdiptech and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and Skandinaviska Enskilda
The main advantage of trading using opposite Sdiptech and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Sdiptech vs. AB Sagax | Sdiptech vs. ALM Equity AB | Sdiptech vs. KABE Group AB | Sdiptech vs. IAR Systems 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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