Correlation Between Stillfront Group and SBB-B
Can any of the company-specific risk be diversified away by investing in both Stillfront Group and SBB-B 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 Stillfront Group and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillfront Group AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Stillfront Group and SBB-B 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 SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and SBB-B.
Diversification Opportunities for Stillfront Group and SBB-B
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stillfront and SBB-B is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget 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 SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Stillfront Group i.e., Stillfront Group and SBB-B go up and down completely randomly.
Pair Corralation between Stillfront Group and SBB-B
Assuming the 90 days horizon Stillfront Group AB is expected to generate 0.81 times more return on investment than SBB-B. However, Stillfront Group AB is 1.24 times less risky than SBB-B. It trades about 0.02 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.17 per unit of risk. If you would invest 721.00 in Stillfront Group AB on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Stillfront Group AB or generate 1.8% 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. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Stillfront Group |
| Samhllsbyggnadsbolaget |
Stillfront Group and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and SBB-B
The main advantage of trading using opposite Stillfront Group and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.| Stillfront Group vs. MilDef Group AB | Stillfront Group vs. Fractal Gaming Group | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
| SBB-B vs. FastPartner AB | SBB-B vs. Svolder AB | SBB-B vs. Fastighets AB Balder | SBB-B vs. Cibus Nordic Real |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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