Correlation Between Svenska Handelsbanken and VNV Global
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and VNV Global 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 VNV Global 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 VNV Global AB, you can compare the effects of market volatilities on Svenska Handelsbanken and VNV Global 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 VNV Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and VNV Global.
Diversification Opportunities for Svenska Handelsbanken and VNV Global
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Svenska and VNV is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and VNV Global AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNV Global 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 VNV Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNV Global AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and VNV Global go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and VNV Global
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to under-perform the VNV Global. But the stock apears to be less risky and, when comparing its historical volatility, Svenska Handelsbanken AB is 2.91 times less risky than VNV Global. The stock trades about -0.07 of its potential returns per unit of risk. The VNV Global AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,902 in VNV Global AB on September 3, 2024 and sell it today you would lose (4.00) from holding VNV Global AB or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. VNV Global AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| VNV Global AB |
Svenska Handelsbanken and VNV Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and VNV Global
The main advantage of trading using opposite Svenska Handelsbanken and VNV Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, VNV Global 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 VNV Global will offset losses from the drop in VNV Global'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 |
| VNV Global vs. Kinnevik Investment AB | VNV Global vs. Investor AB ser | VNV Global vs. Sinch AB | VNV Global vs. Vef 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |