Correlation Between Scandinavian Enviro and SenzaGen
Can any of the company-specific risk be diversified away by investing in both Scandinavian Enviro and SenzaGen 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 SenzaGen 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 SenzaGen AB, you can compare the effects of market volatilities on Scandinavian Enviro and SenzaGen 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 SenzaGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Enviro and SenzaGen.
Diversification Opportunities for Scandinavian Enviro and SenzaGen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scandinavian and SenzaGen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Enviro Systems and SenzaGen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenzaGen 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 SenzaGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenzaGen AB has no effect on the direction of Scandinavian Enviro i.e., Scandinavian Enviro and SenzaGen go up and down completely randomly.
Pair Corralation between Scandinavian Enviro and SenzaGen
Assuming the 90 days trading horizon Scandinavian Enviro Systems is expected to generate 0.89 times more return on investment than SenzaGen. However, Scandinavian Enviro Systems is 1.13 times less risky than SenzaGen. It trades about -0.05 of its potential returns per unit of risk. SenzaGen AB is currently generating about -0.14 per unit of risk. If you would invest 179.00 in Scandinavian Enviro Systems on November 30, 2024 and sell it today you would lose (13.00) from holding Scandinavian Enviro Systems or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Enviro Systems vs. SenzaGen AB
Performance |
| Timeline |
| Scandinavian Enviro |
| SenzaGen AB |
Scandinavian Enviro and SenzaGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Enviro and SenzaGen
The main advantage of trading using opposite Scandinavian Enviro and SenzaGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Enviro position performs unexpectedly, SenzaGen 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 SenzaGen will offset losses from the drop in SenzaGen'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 |
| SenzaGen vs. Vicore Pharma Holding | SenzaGen vs. Enorama Pharma AB | SenzaGen vs. Xintela AB | SenzaGen vs. Alzinova 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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