Correlation Between Svenska Handelsbanken and ALM Equity
Specify exactly 2 symbols:
By analyzing existing cross correlation between Svenska Handelsbanken AB and ALM Equity AB, you can compare the effects of market volatilities on Svenska Handelsbanken and ALM Equity 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 ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and ALM Equity.
Diversification Opportunities for Svenska Handelsbanken and ALM Equity
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and ALM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity 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 ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and ALM Equity go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and ALM Equity
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 1.25 times more return on investment than ALM Equity. However, Svenska Handelsbanken is 1.25 times more volatile than ALM Equity AB. It trades about 0.09 of its potential returns per unit of risk. ALM Equity AB is currently generating about 0.03 per unit of risk. If you would invest 11,052 in Svenska Handelsbanken AB on November 27, 2024 and sell it today you would earn a total of 8,218 from holding Svenska Handelsbanken AB or generate 74.36% 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. ALM Equity AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| ALM Equity AB |
Svenska Handelsbanken and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and ALM Equity
The main advantage of trading using opposite Svenska Handelsbanken and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, ALM Equity 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 ALM Equity will offset losses from the drop in ALM Equity's long position.| Svenska Handelsbanken vs. Svenska Handelsbanken AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Atlas Copco AB | Svenska Handelsbanken vs. Skandinaviska Enskilda Banken |
| ALM Equity vs. New Nordic Healthbrands | ALM Equity vs. Nexam Chemical Holding | ALM Equity vs. Upsales Technology AB | ALM Equity vs. eEducation Albert 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |