Correlation Between Sdiptech and Systemair
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By analyzing existing cross correlation between Sdiptech AB and Systemair AB, you can compare the effects of market volatilities on Sdiptech and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Systemair.
Diversification Opportunities for Sdiptech and Systemair
Good diversification
The 3 months correlation between Sdiptech and Systemair is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Sdiptech i.e., Sdiptech and Systemair go up and down completely randomly.
Pair Corralation between Sdiptech and Systemair
Assuming the 90 days trading horizon Sdiptech is expected to generate 4.42 times less return on investment than Systemair. But when comparing it to its historical volatility, Sdiptech AB is 5.41 times less risky than Systemair. It trades about 0.31 of its potential returns per unit of risk. Systemair AB is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 8,260 in Systemair AB on September 13, 2024 and sell it today you would earn a total of 1,520 from holding Systemair AB or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. Systemair AB
Performance |
| Timeline |
| Sdiptech AB |
| Systemair AB |
Sdiptech and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and Systemair
The main advantage of trading using opposite Sdiptech and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Sdiptech vs. Systemair AB | Sdiptech vs. Garo AB | Sdiptech vs. KABE Group AB | Sdiptech vs. IAR Systems Group |
| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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