Correlation Between Swedencare Publ and Boozt AB
Can any of the company-specific risk be diversified away by investing in both Swedencare Publ and Boozt 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 Swedencare Publ and Boozt AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedencare publ AB and Boozt AB, you can compare the effects of market volatilities on Swedencare Publ and Boozt 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 Swedencare Publ with a short position of Boozt AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Boozt AB.
Diversification Opportunities for Swedencare Publ and Boozt AB
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedencare and Boozt is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ AB and Boozt AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boozt AB and Swedencare Publ 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 Swedencare publ AB are associated (or correlated) with Boozt AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boozt AB has no effect on the direction of Swedencare Publ i.e., Swedencare Publ and Boozt AB go up and down completely randomly.
Pair Corralation between Swedencare Publ and Boozt AB
Assuming the 90 days trading horizon Swedencare publ AB is expected to generate 1.08 times more return on investment than Boozt AB. However, Swedencare Publ is 1.08 times more volatile than Boozt AB. It trades about 0.04 of its potential returns per unit of risk. Boozt AB is currently generating about 0.04 per unit of risk. If you would invest 3,684 in Swedencare publ AB on August 29, 2024 and sell it today you would earn a total of 1,102 from holding Swedencare publ AB or generate 29.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedencare publ AB vs. Boozt AB
Performance |
| Timeline |
| Swedencare publ AB |
| Boozt AB |
Swedencare Publ and Boozt AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedencare Publ and Boozt AB
The main advantage of trading using opposite Swedencare Publ and Boozt AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ position performs unexpectedly, Boozt 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 Boozt AB will offset losses from the drop in Boozt AB's long position.| Swedencare Publ vs. Enzymatica publ AB | Swedencare Publ vs. Moberg Pharma AB | Swedencare Publ vs. Truecaller AB |
| Boozt AB vs. Thule Group AB | Boozt AB vs. Sinch AB | Boozt AB vs. Hexatronic Group AB | Boozt AB vs. NIBE Industrier 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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