Correlation Between Svenska Handelsbanken and Malmbergs Elektriska
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Malmbergs Elektriska 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 Malmbergs Elektriska 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 Malmbergs Elektriska AB, you can compare the effects of market volatilities on Svenska Handelsbanken and Malmbergs Elektriska 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 Malmbergs Elektriska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Malmbergs Elektriska.
Diversification Opportunities for Svenska Handelsbanken and Malmbergs Elektriska
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and Malmbergs is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Malmbergs Elektriska AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malmbergs Elektriska 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 Malmbergs Elektriska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malmbergs Elektriska has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Malmbergs Elektriska go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Malmbergs Elektriska
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.47 times more return on investment than Malmbergs Elektriska. However, Svenska Handelsbanken AB is 2.13 times less risky than Malmbergs Elektriska. It trades about -0.07 of its potential returns per unit of risk. Malmbergs Elektriska AB is currently generating about -0.11 per unit of risk. If you would invest 11,240 in Svenska Handelsbanken AB on August 28, 2024 and sell it today you would lose (145.00) from holding Svenska Handelsbanken AB or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Malmbergs Elektriska AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| Malmbergs Elektriska |
Svenska Handelsbanken and Malmbergs Elektriska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Malmbergs Elektriska
The main advantage of trading using opposite Svenska Handelsbanken and Malmbergs Elektriska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Malmbergs Elektriska 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 Malmbergs Elektriska will offset losses from the drop in Malmbergs Elektriska'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 |
| Malmbergs Elektriska vs. Divio Technologies AB | Malmbergs Elektriska vs. XMReality AB | Malmbergs Elektriska vs. KABE Group AB | Malmbergs Elektriska vs. IAR Systems Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |