Correlation Between Skanska AB and IZafe Group
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By analyzing existing cross correlation between Skanska AB and iZafe Group AB, you can compare the effects of market volatilities on Skanska AB and IZafe Group 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 Skanska AB with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skanska AB and IZafe Group.
Diversification Opportunities for Skanska AB and IZafe Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Skanska and IZafe is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Skanska AB and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and Skanska 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 Skanska AB are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of Skanska AB i.e., Skanska AB and IZafe Group go up and down completely randomly.
Pair Corralation between Skanska AB and IZafe Group
Assuming the 90 days trading horizon Skanska AB is expected to generate 1.87 times less return on investment than IZafe Group. But when comparing it to its historical volatility, Skanska AB is 4.47 times less risky than IZafe Group. It trades about 0.06 of its potential returns per unit of risk. iZafe Group AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 28.00 in iZafe Group AB on September 24, 2024 and sell it today you would lose (7.00) from holding iZafe Group AB or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Skanska AB vs. iZafe Group AB
Performance |
| Timeline |
| Skanska AB |
| iZafe Group AB |
Skanska AB and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skanska AB and IZafe Group
The main advantage of trading using opposite Skanska AB and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skanska AB position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| Skanska AB vs. Sweco AB | Skanska AB vs. Sweco AB | Skanska AB vs. Bravida Holding AB | Skanska AB vs. Afry AB |
| IZafe Group vs. Skanska AB | IZafe Group vs. AB SKF | IZafe Group vs. Tele2 AB | IZafe Group vs. AB Electrolux |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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