Correlation Between Skandinaviska Enskilda and Systemair
Can any of the company-specific risk be diversified away by investing in both Skandinaviska Enskilda and Systemair 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 Systemair 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 Systemair AB, you can compare the effects of market volatilities on Skandinaviska Enskilda and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and Systemair.
Diversification Opportunities for Skandinaviska Enskilda and Systemair
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skandinaviska and Systemair is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and Systemair go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and Systemair
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to under-perform the Systemair. But the stock apears to be less risky and, when comparing its historical volatility, Skandinaviska Enskilda Banken is 2.31 times less risky than Systemair. The stock trades about -0.06 of its potential returns per unit of risk. The Systemair AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 8,150 in Systemair AB on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Systemair AB or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. Systemair AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| Systemair AB |
Skandinaviska Enskilda and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and Systemair
The main advantage of trading using opposite Skandinaviska Enskilda and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair'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 |
| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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