Correlation Between Securitas and Securitas
Can any of the company-specific risk be diversified away by investing in both Securitas and Securitas 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 Securitas and Securitas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Securitas AB and Securitas AB, you can compare the effects of market volatilities on Securitas and Securitas 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 Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Securitas and Securitas.
Diversification Opportunities for Securitas and Securitas
Poor diversification
The 3 months correlation between Securitas and Securitas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Securitas AB and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB 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 Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Securitas i.e., Securitas and Securitas go up and down completely randomly.
Pair Corralation between Securitas and Securitas
Assuming the 90 days trading horizon Securitas is expected to generate 1.76 times less return on investment than Securitas. But when comparing it to its historical volatility, Securitas AB is 1.42 times less risky than Securitas. It trades about 0.1 of its potential returns per unit of risk. Securitas AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 769.00 in Securitas AB on August 31, 2024 and sell it today you would earn a total of 516.00 from holding Securitas AB or generate 67.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 55.97% |
| Values | Daily Returns |
Securitas AB vs. Securitas AB
Performance |
| Timeline |
| Securitas AB |
| Securitas AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Securitas and Securitas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Securitas and Securitas
The main advantage of trading using opposite Securitas and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Securitas position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.The idea behind Securitas AB and Securitas AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Securitas vs. Where Food Comes | Securitas vs. 51Talk Online Education | Securitas vs. Cimpress NV | Securitas vs. Organic Sales and |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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