Correlation Between Skandinaviska Enskilda and KebNi AB
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By analyzing existing cross correlation between Skandinaviska Enskilda Banken and KebNi AB, you can compare the effects of market volatilities on Skandinaviska Enskilda and KebNi 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and KebNi AB.
Diversification Opportunities for Skandinaviska Enskilda and KebNi AB
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Skandinaviska and KebNi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and KebNi AB go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and KebNi AB
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.43 times more return on investment than KebNi AB. However, Skandinaviska Enskilda Banken is 2.34 times less risky than KebNi AB. It trades about -0.08 of its potential returns per unit of risk. KebNi AB is currently generating about -0.16 per unit of risk. If you would invest 16,440 in Skandinaviska Enskilda Banken on September 2, 2024 and sell it today you would lose (1,100) from holding Skandinaviska Enskilda Banken or give up 6.69% 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. KebNi AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| KebNi AB |
Skandinaviska Enskilda and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and KebNi AB
The main advantage of trading using opposite Skandinaviska Enskilda and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, KebNi 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 KebNi AB will offset losses from the drop in KebNi AB's long position.| Skandinaviska Enskilda vs. Scandic Hotels Group | Skandinaviska Enskilda vs. Raketech Group Holding | Skandinaviska Enskilda vs. FormPipe Software AB | Skandinaviska Enskilda vs. OptiCept Technologies AB |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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