Correlation Between Svenska Handelsbanken and Catena AB
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Catena 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 Svenska Handelsbanken and Catena AB 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 Catena AB, you can compare the effects of market volatilities on Svenska Handelsbanken and Catena 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 Svenska Handelsbanken with a short position of Catena AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Catena AB.
Diversification Opportunities for Svenska Handelsbanken and Catena AB
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Svenska and Catena is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Catena AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena AB 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 Catena AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Catena AB go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Catena AB
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.99 times more return on investment than Catena AB. However, Svenska Handelsbanken AB is 1.01 times less risky than Catena AB. It trades about 0.08 of its potential returns per unit of risk. Catena AB is currently generating about -0.05 per unit of risk. If you would invest 9,954 in Svenska Handelsbanken AB on September 1, 2024 and sell it today you would earn a total of 1,396 from holding Svenska Handelsbanken AB or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Catena AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| Catena AB |
Svenska Handelsbanken and Catena AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Catena AB
The main advantage of trading using opposite Svenska Handelsbanken and Catena AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Catena 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 Catena AB will offset losses from the drop in Catena AB'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 |
| Catena AB vs. Fastighets AB Balder | Catena AB vs. Fabege AB | Catena AB vs. Wihlborgs Fastigheter AB | Catena AB vs. AB Sagax |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |