Correlation Between Svenska Handelsbanken and Tangiamo Touch
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and Tangiamo Touch 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 Tangiamo Touch 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 Tangiamo Touch Technology, you can compare the effects of market volatilities on Svenska Handelsbanken and Tangiamo Touch 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 Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Tangiamo Touch.
Diversification Opportunities for Svenska Handelsbanken and Tangiamo Touch
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Svenska and Tangiamo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Tangiamo Touch Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangiamo Touch Technology 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 Tangiamo Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangiamo Touch Technology has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Tangiamo Touch go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Tangiamo Touch
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.34 times more return on investment than Tangiamo Touch. However, Svenska Handelsbanken AB is 2.94 times less risky than Tangiamo Touch. It trades about 0.41 of its potential returns per unit of risk. Tangiamo Touch Technology is currently generating about -0.01 per unit of risk. If you would invest 15,280 in Svenska Handelsbanken AB on November 2, 2024 and sell it today you would earn a total of 1,450 from holding Svenska Handelsbanken AB or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Tangiamo Touch Technology
Performance |
| Timeline |
| Svenska Handelsbanken |
| Tangiamo Touch Technology |
Svenska Handelsbanken and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Tangiamo Touch
The main advantage of trading using opposite Svenska Handelsbanken and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Tangiamo Touch 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 Tangiamo Touch will offset losses from the drop in Tangiamo Touch'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 |
| Tangiamo Touch vs. XMReality AB | Tangiamo Touch vs. Enersize Oy | Tangiamo Touch vs. Mavshack publ AB | Tangiamo Touch 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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