Correlation Between Skandinaviska Enskilda and Zinzino AB
Can any of the company-specific risk be diversified away by investing in both Skandinaviska Enskilda and Zinzino AB 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 Zinzino AB 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 Zinzino AB Series, you can compare the effects of market volatilities on Skandinaviska Enskilda and Zinzino 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 Zinzino AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and Zinzino AB.
Diversification Opportunities for Skandinaviska Enskilda and Zinzino AB
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Skandinaviska and Zinzino is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and Zinzino AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinzino AB Series 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 Zinzino AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinzino AB Series has no effect on the direction of Skandinaviska Enskilda i.e., Skandinaviska Enskilda and Zinzino AB go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and Zinzino AB
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to under-perform the Zinzino AB. But the stock apears to be less risky and, when comparing its historical volatility, Skandinaviska Enskilda Banken is 1.76 times less risky than Zinzino AB. The stock trades about -0.02 of its potential returns per unit of risk. The Zinzino AB Series is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,942 in Zinzino AB Series on September 1, 2024 and sell it today you would earn a total of 928.00 from holding Zinzino AB Series or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. Zinzino AB Series
Performance |
| Timeline |
| Skandinaviska Enskilda |
| Zinzino AB Series |
Skandinaviska Enskilda and Zinzino AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and Zinzino AB
The main advantage of trading using opposite Skandinaviska Enskilda and Zinzino AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda position performs unexpectedly, Zinzino 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 Zinzino AB will offset losses from the drop in Zinzino AB'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 |
| Zinzino AB vs. eWork Group AB | Zinzino AB vs. Softronic AB | Zinzino AB vs. Niloerngruppen AB Series | Zinzino AB vs. Transtema 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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