Correlation Between Svenska Handelsbanken and SinterCast
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and SinterCast 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 SinterCast 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 SinterCast AB, you can compare the effects of market volatilities on Svenska Handelsbanken and SinterCast 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 SinterCast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and SinterCast.
Diversification Opportunities for Svenska Handelsbanken and SinterCast
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and SinterCast is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and SinterCast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinterCast 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 SinterCast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinterCast AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and SinterCast go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and SinterCast
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.71 times more return on investment than SinterCast. However, Svenska Handelsbanken AB is 1.4 times less risky than SinterCast. It trades about 0.05 of its potential returns per unit of risk. SinterCast AB is currently generating about 0.01 per unit of risk. If you would invest 11,709 in Svenska Handelsbanken AB on October 11, 2024 and sell it today you would earn a total of 3,771 from holding Svenska Handelsbanken AB or generate 32.21% 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. SinterCast AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| SinterCast AB |
Svenska Handelsbanken and SinterCast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and SinterCast
The main advantage of trading using opposite Svenska Handelsbanken and SinterCast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, SinterCast 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 SinterCast will offset losses from the drop in SinterCast'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 |
| SinterCast vs. CTT Systems AB | SinterCast vs. Studsvik AB | SinterCast vs. Proact IT Group | SinterCast vs. Rottneros 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |