Correlation Between Skandinaviska Enskilda and KlaraBo Sverige
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By analyzing existing cross correlation between Skandinaviska Enskilda Banken and KlaraBo Sverige AB, you can compare the effects of market volatilities on Skandinaviska Enskilda and KlaraBo Sverige 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 KlaraBo Sverige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and KlaraBo Sverige.
Diversification Opportunities for Skandinaviska Enskilda and KlaraBo Sverige
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skandinaviska and KlaraBo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and KlaraBo Sverige AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KlaraBo Sverige 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 KlaraBo Sverige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KlaraBo Sverige AB has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and KlaraBo Sverige go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and KlaraBo Sverige
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.46 times more return on investment than KlaraBo Sverige. However, Skandinaviska Enskilda Banken is 2.19 times less risky than KlaraBo Sverige. It trades about 0.03 of its potential returns per unit of risk. KlaraBo Sverige AB is currently generating about -0.12 per unit of risk. If you would invest 15,260 in Skandinaviska Enskilda Banken on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Skandinaviska Enskilda Banken or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. KlaraBo Sverige AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| KlaraBo Sverige AB |
Skandinaviska Enskilda and KlaraBo Sverige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and KlaraBo Sverige
The main advantage of trading using opposite Skandinaviska Enskilda and KlaraBo Sverige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, KlaraBo Sverige 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 KlaraBo Sverige will offset losses from the drop in KlaraBo Sverige's long position.| Skandinaviska Enskilda vs. Svenska Handelsbanken AB | Skandinaviska Enskilda vs. Telia Company AB | Skandinaviska Enskilda vs. Tele2 AB | Skandinaviska Enskilda vs. H M Hennes |
| KlaraBo Sverige vs. Fastighets AB Balder | KlaraBo Sverige vs. Fabege AB | KlaraBo Sverige vs. Wihlborgs Fastigheter AB | KlaraBo Sverige vs. Castellum 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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