Correlation Between Simris Alg and SenzaGen
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By analyzing existing cross correlation between Simris Alg AB and SenzaGen AB, you can compare the effects of market volatilities on Simris Alg and SenzaGen 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 SenzaGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simris Alg and SenzaGen.
Diversification Opportunities for Simris Alg and SenzaGen
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simris and SenzaGen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Simris Alg AB and SenzaGen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenzaGen 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 SenzaGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenzaGen AB has no effect on the direction of Simris Alg i.e., Simris Alg and SenzaGen go up and down completely randomly.
Pair Corralation between Simris Alg and SenzaGen
Assuming the 90 days trading horizon Simris Alg AB is expected to under-perform the SenzaGen. In addition to that, Simris Alg is 5.29 times more volatile than SenzaGen AB. It trades about -0.04 of its total potential returns per unit of risk. SenzaGen AB is currently generating about -0.06 per unit of volatility. If you would invest 715.00 in SenzaGen AB on September 1, 2024 and sell it today you would lose (20.00) from holding SenzaGen AB or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Simris Alg AB vs. SenzaGen AB
Performance |
| Timeline |
| Simris Alg AB |
| SenzaGen AB |
Simris Alg and SenzaGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simris Alg and SenzaGen
The main advantage of trading using opposite Simris Alg and SenzaGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simris Alg position performs unexpectedly, SenzaGen 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 SenzaGen will offset losses from the drop in SenzaGen's long position.| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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