Correlation Between Simris Alg and Sedana Medical
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By analyzing existing cross correlation between Simris Alg AB and Sedana Medical AB, you can compare the effects of market volatilities on Simris Alg and Sedana Medical 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 Sedana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simris Alg and Sedana Medical.
Diversification Opportunities for Simris Alg and Sedana Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Simris and Sedana is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Simris Alg AB and Sedana Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sedana Medical AB 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 Sedana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sedana Medical AB has no effect on the direction of Simris Alg i.e., Simris Alg and Sedana Medical go up and down completely randomly.
Pair Corralation between Simris Alg and Sedana Medical
Assuming the 90 days trading horizon Simris Alg AB is expected to under-perform the Sedana Medical. In addition to that, Simris Alg is 1.42 times more volatile than Sedana Medical AB. It trades about -0.04 of its total potential returns per unit of risk. Sedana Medical AB is currently generating about -0.03 per unit of volatility. If you would invest 3,282 in Sedana Medical AB on September 4, 2024 and sell it today you would lose (1,962) from holding Sedana Medical AB or give up 59.78% 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. Sedana Medical AB
Performance |
| Timeline |
| Simris Alg AB |
| Sedana Medical AB |
Simris Alg and Sedana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simris Alg and Sedana Medical
The main advantage of trading using opposite Simris Alg and Sedana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simris Alg position performs unexpectedly, Sedana Medical 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 Sedana Medical will offset losses from the drop in Sedana Medical's long position.| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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