Correlation Between Smurfit Kappa and Strer SE
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and Strer SE 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 Smurfit Kappa and Strer SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and Strer SE Co, you can compare the effects of market volatilities on Smurfit Kappa and Strer SE 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 Smurfit Kappa with a short position of Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and Strer SE.
Diversification Opportunities for Smurfit Kappa and Strer SE
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Smurfit and Strer is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and Strer SE go up and down completely randomly.
Pair Corralation between Smurfit Kappa and Strer SE
Assuming the 90 days horizon Smurfit Kappa Group is expected to generate 1.03 times more return on investment than Strer SE. However, Smurfit Kappa is 1.03 times more volatile than Strer SE Co. It trades about 0.04 of its potential returns per unit of risk. Strer SE Co is currently generating about -0.15 per unit of risk. If you would invest 5,058 in Smurfit Kappa Group on November 29, 2024 and sell it today you would earn a total of 72.00 from holding Smurfit Kappa Group or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Smurfit Kappa Group vs. Strer SE Co
Performance |
| Timeline |
| Smurfit Kappa Group |
| Strer SE |
Smurfit Kappa and Strer SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and Strer SE
The main advantage of trading using opposite Smurfit Kappa and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.| Smurfit Kappa vs. Boston Beer Co | Smurfit Kappa vs. China Resources Beer | Smurfit Kappa vs. Molson Coors Beverage | Smurfit Kappa vs. BOSTON BEER A |
| Strer SE vs. GAMES BOX SA | Strer SE vs. Suntory Beverage Food | Strer SE vs. MOLSON RS BEVERAGE | Strer SE vs. China Resources Beer |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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