Correlation Between Svenska Handelsbanken and Audientes
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Audientes 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 Audientes 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 Audientes AS, you can compare the effects of market volatilities on Svenska Handelsbanken and Audientes 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 Audientes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Audientes.
Diversification Opportunities for Svenska Handelsbanken and Audientes
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Svenska and Audientes is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Audientes AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audientes AS 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 Audientes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audientes AS has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Audientes go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Audientes
Assuming the 90 days trading horizon Svenska Handelsbanken is expected to generate 1.57 times less return on investment than Audientes. But when comparing it to its historical volatility, Svenska Handelsbanken AB is 9.09 times less risky than Audientes. It trades about 0.12 of its potential returns per unit of risk. Audientes AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3.88 in Audientes AS on September 3, 2024 and sell it today you would lose (1.66) from holding Audientes AS or give up 42.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Audientes AS
Performance |
| Timeline |
| Svenska Handelsbanken |
| Audientes AS |
Svenska Handelsbanken and Audientes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Audientes
The main advantage of trading using opposite Svenska Handelsbanken and Audientes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Audientes 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 Audientes will offset losses from the drop in Audientes' 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 |
| Audientes vs. Corline Biomedical AB | Audientes vs. Svenska Handelsbanken AB | Audientes vs. NetJobs Group AB | Audientes vs. Lundin Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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