Correlation Between Svenska Handelsbanken and Sdiptech
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By analyzing existing cross correlation between Svenska Handelsbanken AB and Sdiptech AB, you can compare the effects of market volatilities on Svenska Handelsbanken and Sdiptech 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 Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Sdiptech.
Diversification Opportunities for Svenska Handelsbanken and Sdiptech
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Svenska and Sdiptech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech 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 Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Sdiptech go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Sdiptech
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 1.53 times more return on investment than Sdiptech. However, Svenska Handelsbanken is 1.53 times more volatile than Sdiptech AB. It trades about 0.23 of its potential returns per unit of risk. Sdiptech AB is currently generating about 0.05 per unit of risk. If you would invest 15,120 in Svenska Handelsbanken AB on November 3, 2024 and sell it today you would earn a total of 1,500 from holding Svenska Handelsbanken AB or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Sdiptech AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| Sdiptech AB |
Svenska Handelsbanken and Sdiptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Sdiptech
The main advantage of trading using opposite Svenska Handelsbanken and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech'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 |
| Sdiptech vs. Sdiptech AB | Sdiptech vs. AB Sagax | Sdiptech vs. Corem Property Group | Sdiptech vs. Volati 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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