Correlation Between Sinch AB and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Sinch AB and Surgical Science 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 Sinch AB and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Surgical Science Sweden, you can compare the effects of market volatilities on Sinch AB and Surgical Science 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 Sinch AB with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Surgical Science.
Diversification Opportunities for Sinch AB and Surgical Science
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinch and Surgical is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sinch AB and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Sinch 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 Sinch AB are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Sinch AB i.e., Sinch AB and Surgical Science go up and down completely randomly.
Pair Corralation between Sinch AB and Surgical Science
Assuming the 90 days trading horizon Sinch AB is expected to generate 1.34 times more return on investment than Surgical Science. However, Sinch AB is 1.34 times more volatile than Surgical Science Sweden. It trades about 0.03 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.04 per unit of risk. If you would invest 1,697 in Sinch AB on August 25, 2024 and sell it today you would earn a total of 266.00 from holding Sinch AB or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Sinch AB vs. Surgical Science Sweden
Performance |
| Timeline |
| Sinch AB |
| Surgical Science Sweden |
Sinch AB and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinch AB and Surgical Science
The main advantage of trading using opposite Sinch AB and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Sinch AB vs. Lidds AB | Sinch AB vs. Serstech AB | Sinch AB vs. Transtema Group AB | Sinch AB vs. Enorama Pharma AB |
| Surgical Science vs. AVTECH Sweden AB | Surgical Science vs. K2A Knaust Andersson | Surgical Science vs. Dlaboratory Sweden AB | Surgical Science vs. eEducation Albert 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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