Correlation Between Skandinaviska Enskilda and Climeon AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Skandinaviska Enskilda Banken and Climeon AB, you can compare the effects of market volatilities on Skandinaviska Enskilda and Climeon AB 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 Climeon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and Climeon AB.
Diversification Opportunities for Skandinaviska Enskilda and Climeon AB
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Skandinaviska and Climeon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and Climeon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Climeon 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 Climeon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Climeon AB has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and Climeon AB go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and Climeon AB
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.21 times more return on investment than Climeon AB. However, Skandinaviska Enskilda Banken is 4.69 times less risky than Climeon AB. It trades about -0.1 of its potential returns per unit of risk. Climeon AB is currently generating about -0.28 per unit of risk. If you would invest 15,440 in Skandinaviska Enskilda Banken on August 29, 2024 and sell it today you would lose (420.00) from holding Skandinaviska Enskilda Banken or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. Climeon AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| Climeon AB |
Skandinaviska Enskilda and Climeon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and Climeon AB
The main advantage of trading using opposite Skandinaviska Enskilda and Climeon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, Climeon AB 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 Climeon AB will offset losses from the drop in Climeon AB's long position.| Skandinaviska Enskilda vs. Qleanair Holding AB | Skandinaviska Enskilda vs. AcadeMedia AB | Skandinaviska Enskilda vs. Catena Media plc | Skandinaviska Enskilda vs. Online Brands Nordic |
| Climeon AB vs. Minesto AB | Climeon AB vs. SolTech Energy Sweden | Climeon AB vs. Arise Windpower AB | Climeon AB vs. Oncopeptides 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |