Correlation Between Simris Alg and SBB-B
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By analyzing existing cross correlation between Simris Alg AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Simris Alg and SBB-B 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 Simris Alg with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simris Alg and SBB-B.
Diversification Opportunities for Simris Alg and SBB-B
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simris and SBB-B is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Simris Alg AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Simris Alg 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 Simris Alg AB are associated (or correlated) with SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Simris Alg i.e., Simris Alg and SBB-B go up and down completely randomly.
Pair Corralation between Simris Alg and SBB-B
Assuming the 90 days trading horizon Simris Alg AB is expected to generate 1.85 times more return on investment than SBB-B. However, Simris Alg is 1.85 times more volatile than Samhllsbyggnadsbolaget i Norden. It trades about -0.11 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.33 per unit of risk. If you would invest 13.00 in Simris Alg AB on September 13, 2024 and sell it today you would lose (5.38) from holding Simris Alg AB or give up 41.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simris Alg AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Simris Alg AB |
| Samhllsbyggnadsbolaget |
Simris Alg and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simris Alg and SBB-B
The main advantage of trading using opposite Simris Alg and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simris Alg position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.| Simris Alg vs. Samhllsbyggnadsbolaget i Norden | Simris Alg vs. Media and Games | Simris Alg vs. Hexatronic Group AB | Simris Alg vs. Sinch 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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