Correlation Between Sdiptech and Svenska Handelsbanken
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By analyzing existing cross correlation between Sdiptech AB and Svenska Handelsbanken AB, you can compare the effects of market volatilities on Sdiptech and Svenska Handelsbanken 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 Svenska Handelsbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Svenska Handelsbanken.
Diversification Opportunities for Sdiptech and Svenska Handelsbanken
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sdiptech and Svenska is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and Svenska Handelsbanken AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svenska Handelsbanken 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 Svenska Handelsbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svenska Handelsbanken has no effect on the direction of Sdiptech i.e., Sdiptech and Svenska Handelsbanken go up and down completely randomly.
Pair Corralation between Sdiptech and Svenska Handelsbanken
Assuming the 90 days trading horizon Sdiptech is expected to generate 7.53 times less return on investment than Svenska Handelsbanken. But when comparing it to its historical volatility, Sdiptech AB is 1.53 times less risky than Svenska Handelsbanken. It trades about 0.05 of its potential returns per unit of risk. Svenska Handelsbanken AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 15,120 in Svenska Handelsbanken AB on November 3, 2024 and sell it today you would earn a total of 1,500 from holding Svenska Handelsbanken AB or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. Svenska Handelsbanken AB
Performance |
| Timeline |
| Sdiptech AB |
| Svenska Handelsbanken |
Sdiptech and Svenska Handelsbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and Svenska Handelsbanken
The main advantage of trading using opposite Sdiptech and Svenska Handelsbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, Svenska Handelsbanken 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 Svenska Handelsbanken will offset losses from the drop in Svenska Handelsbanken's long position.| Sdiptech vs. Sdiptech AB | Sdiptech vs. AB Sagax | Sdiptech vs. Corem Property Group | Sdiptech vs. Volati AB |
| Svenska Handelsbanken vs. Svenska Handelsbanken AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Atlas Copco AB | Svenska Handelsbanken vs. Skandinaviska Enskilda Banken |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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