Correlation Between Stillfront Group and Essity AB
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By analyzing existing cross correlation between Stillfront Group AB and Essity AB, you can compare the effects of market volatilities on Stillfront Group and Essity 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 Stillfront Group with a short position of Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Essity AB.
Diversification Opportunities for Stillfront Group and Essity AB
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stillfront and Essity is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity AB and Stillfront Group 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 Stillfront Group AB are associated (or correlated) with Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Stillfront Group i.e., Stillfront Group and Essity AB go up and down completely randomly.
Pair Corralation between Stillfront Group and Essity AB
Assuming the 90 days horizon Stillfront Group AB is expected to generate 3.1 times more return on investment than Essity AB. However, Stillfront Group is 3.1 times more volatile than Essity AB. It trades about 0.49 of its potential returns per unit of risk. Essity AB is currently generating about 0.02 per unit of risk. If you would invest 664.00 in Stillfront Group AB on September 19, 2024 and sell it today you would earn a total of 187.00 from holding Stillfront Group AB or generate 28.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Essity AB
Performance |
| Timeline |
| Stillfront Group |
| Essity AB |
Stillfront Group and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Essity AB
The main advantage of trading using opposite Stillfront Group and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, Essity 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 Essity AB will offset losses from the drop in Essity AB's long position.| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group vs. Evolution AB |
| Essity AB vs. Svenska Cellulosa Aktiebolaget | Essity AB vs. ASSA ABLOY AB | Essity AB vs. AB Electrolux | Essity AB vs. AB SKF |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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