Correlation Between Scandinavian Enviro and Mantex AB
Can any of the company-specific risk be diversified away by investing in both Scandinavian Enviro and Mantex 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 Scandinavian Enviro and Mantex AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Enviro Systems and Mantex AB, you can compare the effects of market volatilities on Scandinavian Enviro and Mantex 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 Scandinavian Enviro with a short position of Mantex AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Enviro and Mantex AB.
Diversification Opportunities for Scandinavian Enviro and Mantex AB
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scandinavian and Mantex is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Enviro Systems and Mantex AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mantex AB and Scandinavian Enviro 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 Scandinavian Enviro Systems are associated (or correlated) with Mantex AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mantex AB has no effect on the direction of Scandinavian Enviro i.e., Scandinavian Enviro and Mantex AB go up and down completely randomly.
Pair Corralation between Scandinavian Enviro and Mantex AB
Assuming the 90 days trading horizon Scandinavian Enviro Systems is expected to generate 0.77 times more return on investment than Mantex AB. However, Scandinavian Enviro Systems is 1.3 times less risky than Mantex AB. It trades about 0.03 of its potential returns per unit of risk. Mantex AB is currently generating about -0.08 per unit of risk. If you would invest 170.00 in Scandinavian Enviro Systems on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Scandinavian Enviro Systems or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Enviro Systems vs. Mantex AB
Performance |
| Timeline |
| Scandinavian Enviro |
| Mantex AB |
Scandinavian Enviro and Mantex AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Enviro and Mantex AB
The main advantage of trading using opposite Scandinavian Enviro and Mantex AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Enviro position performs unexpectedly, Mantex 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 Mantex AB will offset losses from the drop in Mantex AB's long position.| Scandinavian Enviro vs. Minesto AB | Scandinavian Enviro vs. Sivers IMA Holding | Scandinavian Enviro vs. SolTech Energy Sweden | Scandinavian Enviro vs. AAC Clyde Space |
| Mantex AB vs. Lagercrantz Group AB | Mantex AB vs. Addtech AB | Mantex AB vs. AddLife AB | Mantex AB vs. Bufab Holding 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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