Correlation Between Securitas and Autoliv
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By analyzing existing cross correlation between Securitas AB and Autoliv, you can compare the effects of market volatilities on Securitas and Autoliv 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 Securitas with a short position of Autoliv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Securitas and Autoliv.
Diversification Opportunities for Securitas and Autoliv
Very weak diversification
The 3 months correlation between Securitas and Autoliv is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Securitas AB and Autoliv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autoliv and Securitas 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 Securitas AB are associated (or correlated) with Autoliv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autoliv has no effect on the direction of Securitas i.e., Securitas and Autoliv go up and down completely randomly.
Pair Corralation between Securitas and Autoliv
Assuming the 90 days trading horizon Securitas AB is expected to generate 0.89 times more return on investment than Autoliv. However, Securitas AB is 1.12 times less risky than Autoliv. It trades about 0.08 of its potential returns per unit of risk. Autoliv is currently generating about 0.04 per unit of risk. If you would invest 7,847 in Securitas AB on September 2, 2024 and sell it today you would earn a total of 5,948 from holding Securitas AB or generate 75.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Securitas AB vs. Autoliv
Performance |
| Timeline |
| Securitas AB |
| Autoliv |
Securitas and Autoliv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Securitas and Autoliv
The main advantage of trading using opposite Securitas and Autoliv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Securitas position performs unexpectedly, Autoliv 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 Autoliv will offset losses from the drop in Autoliv's long position.| Securitas vs. Sprint Bioscience AB | Securitas vs. Acarix AS | Securitas vs. Annexin Pharmaceuticals AB | Securitas vs. KABE Group AB |
| Autoliv vs. Episurf Medical AB | Autoliv vs. Online Brands Nordic | Autoliv vs. Scandinavian Enviro Systems | Autoliv vs. Acconeer 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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