Correlation Between Skandinaviska Enskilda and Arion Banki
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By analyzing existing cross correlation between Skandinaviska Enskilda Banken and Arion banki hf, you can compare the effects of market volatilities on Skandinaviska Enskilda and Arion Banki 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 Skandinaviska Enskilda with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and Arion Banki.
Diversification Opportunities for Skandinaviska Enskilda and Arion Banki
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skandinaviska and Arion is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and Arion banki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arion banki hf and Skandinaviska Enskilda 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 Skandinaviska Enskilda Banken are associated (or correlated) with Arion Banki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arion banki hf has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and Arion Banki go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and Arion Banki
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.83 times more return on investment than Arion Banki. However, Skandinaviska Enskilda Banken is 1.21 times less risky than Arion Banki. It trades about 0.04 of its potential returns per unit of risk. Arion banki hf is currently generating about 0.02 per unit of risk. If you would invest 12,686 in Skandinaviska Enskilda Banken on August 28, 2024 and sell it today you would earn a total of 2,494 from holding Skandinaviska Enskilda Banken or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. Arion banki hf
Performance |
| Timeline |
| Skandinaviska Enskilda |
| Arion banki hf |
Skandinaviska Enskilda and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and Arion Banki
The main advantage of trading using opposite Skandinaviska Enskilda and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, Arion Banki 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 Arion Banki will offset losses from the drop in Arion Banki's long position.| Skandinaviska Enskilda vs. SaltX Technology Holding | Skandinaviska Enskilda vs. Investment AB Oresund | Skandinaviska Enskilda vs. Raketech Group Holding | Skandinaviska Enskilda vs. JLT Mobile Computers |
| Arion Banki vs. Atrium Ljungberg AB | Arion Banki vs. Arjo AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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