Correlation Between SEB SA and Weber
Can any of the company-specific risk be diversified away by investing in both SEB SA and Weber 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 SEB SA and Weber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEB SA and Weber Inc, you can compare the effects of market volatilities on SEB SA and Weber 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 SEB SA with a short position of Weber. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEB SA and Weber.
Diversification Opportunities for SEB SA and Weber
Pay attention - limited upside
The 3 months correlation between SEB and Weber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEB SA and Weber Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weber Inc and SEB SA 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 SEB SA are associated (or correlated) with Weber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weber Inc has no effect on the direction of SEB SA i.e., SEB SA and Weber go up and down completely randomly.
Pair Corralation between SEB SA and Weber
If you would invest 9,359 in SEB SA on December 10, 2024 and sell it today you would earn a total of 402.00 from holding SEB SA or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SEB SA vs. Weber Inc
Performance |
| Timeline |
| SEB SA |
| Weber Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SEB SA and Weber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEB SA and Weber
The main advantage of trading using opposite SEB SA and Weber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEB SA position performs unexpectedly, Weber 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 Weber will offset losses from the drop in Weber's long position.| SEB SA vs. Turning Point Brands | SEB SA vs. Compania Cervecerias Unidas | SEB SA vs. Japan Tobacco ADR | SEB SA vs. Corsair Gaming |
| Weber vs. Procter Gamble | Weber vs. Yuexiu Transport Infrastructure | Weber vs. Reservoir Media | Weber vs. MYT Netherlands Parent |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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