Correlation Between Svenska Handelsbanken and Akelius Residential
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Akelius Residential 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 Svenska Handelsbanken and Akelius Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Handelsbanken AB and Akelius Residential Property, you can compare the effects of market volatilities on Svenska Handelsbanken and Akelius Residential 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 Svenska Handelsbanken with a short position of Akelius Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Akelius Residential.
Diversification Opportunities for Svenska Handelsbanken and Akelius Residential
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and Akelius is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Akelius Residential Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akelius Residential and Svenska Handelsbanken 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 Svenska Handelsbanken AB are associated (or correlated) with Akelius Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akelius Residential has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Akelius Residential go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Akelius Residential
Assuming the 90 days trading horizon Svenska Handelsbanken is expected to generate 1.49 times less return on investment than Akelius Residential. In addition to that, Svenska Handelsbanken is 1.2 times more volatile than Akelius Residential Property. It trades about 0.12 of its total potential returns per unit of risk. Akelius Residential Property is currently generating about 0.22 per unit of volatility. If you would invest 161.00 in Akelius Residential Property on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Akelius Residential Property or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Akelius Residential Property
Performance |
| Timeline |
| Svenska Handelsbanken |
| Akelius Residential |
Svenska Handelsbanken and Akelius Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Akelius Residential
The main advantage of trading using opposite Svenska Handelsbanken and Akelius Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Akelius Residential 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 Akelius Residential will offset losses from the drop in Akelius Residential's long position.| Svenska Handelsbanken vs. Swedbank AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Tele2 AB | Svenska Handelsbanken vs. Telia Company AB |
| Akelius Residential vs. Cibus Nordic Real | Akelius Residential vs. Samhaellsbyggnadsbolaget i Norden | Akelius Residential vs. AB Sagax | Akelius Residential vs. ALM Equity 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |