Correlation Between Svenska Handelsbanken and KebNi AB
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By analyzing existing cross correlation between Svenska Handelsbanken AB and KebNi AB, you can compare the effects of market volatilities on Svenska Handelsbanken and KebNi 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and KebNi AB.
Diversification Opportunities for Svenska Handelsbanken and KebNi AB
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Svenska and KebNi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and KebNi AB go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and KebNi AB
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.43 times more return on investment than KebNi AB. However, Svenska Handelsbanken AB is 2.35 times less risky than KebNi AB. It trades about 0.04 of its potential returns per unit of risk. KebNi AB is currently generating about 0.02 per unit of risk. If you would invest 9,177 in Svenska Handelsbanken AB on September 2, 2024 and sell it today you would earn a total of 2,173 from holding Svenska Handelsbanken AB or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. KebNi AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| KebNi AB |
Svenska Handelsbanken and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and KebNi AB
The main advantage of trading using opposite Svenska Handelsbanken and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, KebNi 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 KebNi AB will offset losses from the drop in KebNi 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 |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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