Correlation Between Sileon AB and 4C Group
Can any of the company-specific risk be diversified away by investing in both Sileon AB and 4C Group 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 Sileon AB and 4C Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sileon AB and 4C Group AB, you can compare the effects of market volatilities on Sileon AB and 4C Group 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 Sileon AB with a short position of 4C Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sileon AB and 4C Group.
Diversification Opportunities for Sileon AB and 4C Group
Very poor diversification
The 3 months correlation between Sileon and 4C Group is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sileon AB and 4C Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4C Group AB and Sileon AB 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 Sileon AB are associated (or correlated) with 4C Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4C Group AB has no effect on the direction of Sileon AB i.e., Sileon AB and 4C Group go up and down completely randomly.
Pair Corralation between Sileon AB and 4C Group
Assuming the 90 days trading horizon Sileon AB is expected to under-perform the 4C Group. In addition to that, Sileon AB is 1.71 times more volatile than 4C Group AB. It trades about -0.49 of its total potential returns per unit of risk. 4C Group AB is currently generating about -0.34 per unit of volatility. If you would invest 1,280 in 4C Group AB on September 24, 2024 and sell it today you would lose (245.00) from holding 4C Group AB or give up 19.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sileon AB vs. 4C Group AB
Performance |
| Timeline |
| Sileon AB |
| 4C Group AB |
Sileon AB and 4C Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sileon AB and 4C Group
The main advantage of trading using opposite Sileon AB and 4C Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sileon AB position performs unexpectedly, 4C Group 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 4C Group will offset losses from the drop in 4C Group's long position.| Sileon AB vs. Enersize Oy | Sileon AB vs. Divio Technologies AB | Sileon AB vs. Mekonomen AB | Sileon AB vs. Embellence Group AB |
| 4C Group vs. B3 Consulting Group | 4C Group vs. Sleep Cycle AB | 4C Group vs. Avensia publ AB | 4C Group vs. CAG Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |