Correlation Between Skandinaviska Enskilda and BE Group
Can any of the company-specific risk be diversified away by investing in both Skandinaviska Enskilda and BE Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Skandinaviska Enskilda and BE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skandinaviska Enskilda Banken and BE Group AB, you can compare the effects of market volatilities on Skandinaviska Enskilda and BE 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 Skandinaviska Enskilda with a short position of BE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and BE Group.
Diversification Opportunities for Skandinaviska Enskilda and BE Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Skandinaviska and BEGR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and BE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Group AB 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 BE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Group AB has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and BE Group go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and BE Group
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.99 times more return on investment than BE Group. However, Skandinaviska Enskilda Banken is 1.01 times less risky than BE Group. It trades about 0.0 of its potential returns per unit of risk. BE Group AB is currently generating about -0.19 per unit of risk. If you would invest 15,500 in Skandinaviska Enskilda Banken on September 19, 2024 and sell it today you would lose (40.00) from holding Skandinaviska Enskilda Banken or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. BE Group AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| BE Group AB |
Skandinaviska Enskilda and BE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and BE Group
The main advantage of trading using opposite Skandinaviska Enskilda and BE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, BE 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 BE Group will offset losses from the drop in BE Group's long position.| Skandinaviska Enskilda vs. Nordea Bank Abp | Skandinaviska Enskilda vs. Swedbank AB | Skandinaviska Enskilda vs. Avanza Bank Holding | Skandinaviska Enskilda vs. Arion banki hf |
| BE Group vs. Skandinaviska Enskilda Banken | BE Group vs. Skandinaviska Enskilda Banken | BE Group vs. Swedbank AB | BE Group vs. Svenska Handelsbanken 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |