Correlation Between Scandinavian Investment and Jeudan
Can any of the company-specific risk be diversified away by investing in both Scandinavian Investment and Jeudan 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 Scandinavian Investment and Jeudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Investment Group and Jeudan, you can compare the effects of market volatilities on Scandinavian Investment and Jeudan 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 Scandinavian Investment with a short position of Jeudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and Jeudan.
Diversification Opportunities for Scandinavian Investment and Jeudan
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandinavian and Jeudan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and Jeudan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeudan and Scandinavian Investment 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 Scandinavian Investment Group are associated (or correlated) with Jeudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeudan has no effect on the direction of Scandinavian Investment i.e., Scandinavian Investment and Jeudan go up and down completely randomly.
Pair Corralation between Scandinavian Investment and Jeudan
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to generate 0.99 times more return on investment than Jeudan. However, Scandinavian Investment Group is 1.01 times less risky than Jeudan. It trades about 0.19 of its potential returns per unit of risk. Jeudan is currently generating about -0.42 per unit of risk. If you would invest 322.00 in Scandinavian Investment Group on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Scandinavian Investment Group or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. Jeudan
Performance |
| Timeline |
| Scandinavian Investment |
| Jeudan |
Scandinavian Investment and Jeudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Investment and Jeudan
The main advantage of trading using opposite Scandinavian Investment and Jeudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment position performs unexpectedly, Jeudan 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 Jeudan will offset losses from the drop in Jeudan's long position.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| Jeudan vs. BioPorto | Jeudan vs. Newcap Holding AS | Jeudan vs. Agat Ejendomme AS | Jeudan vs. PF Atlantic Petroleum |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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