Correlation Between Svenska Handelsbanken and Catena Media
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Catena Media 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 Media 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 Media plc, you can compare the effects of market volatilities on Svenska Handelsbanken and Catena Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Catena Media.
Diversification Opportunities for Svenska Handelsbanken and Catena Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Svenska and Catena is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Catena Media plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media plc 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media plc has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Catena Media go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Catena Media
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.17 times more return on investment than Catena Media. However, Svenska Handelsbanken AB is 5.79 times less risky than Catena Media. It trades about 0.03 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.08 per unit of risk. If you would invest 14,300 in Svenska Handelsbanken AB on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Svenska Handelsbanken AB or generate 0.49% 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 Media plc
Performance |
| Timeline |
| Svenska Handelsbanken |
| Catena Media plc |
Svenska Handelsbanken and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Catena Media
The main advantage of trading using opposite Svenska Handelsbanken and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Catena Media 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 Media will offset losses from the drop in Catena Media'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 |
| Catena Media vs. XMReality AB | Catena Media vs. Enersize Oy | Catena Media vs. Mavshack publ AB | Catena Media vs. Serstech 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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