Correlation Between SKAKO AS and Schouw
Can any of the company-specific risk be diversified away by investing in both SKAKO AS and Schouw 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 SKAKO AS and Schouw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKAKO AS and Schouw Co, you can compare the effects of market volatilities on SKAKO AS and Schouw 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 SKAKO AS with a short position of Schouw. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKAKO AS and Schouw.
Diversification Opportunities for SKAKO AS and Schouw
Weak diversification
The 3 months correlation between SKAKO and Schouw is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SKAKO AS and Schouw Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schouw and SKAKO AS 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 SKAKO AS are associated (or correlated) with Schouw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schouw has no effect on the direction of SKAKO AS i.e., SKAKO AS and Schouw go up and down completely randomly.
Pair Corralation between SKAKO AS and Schouw
Assuming the 90 days trading horizon SKAKO AS is expected to generate 1.76 times more return on investment than Schouw. However, SKAKO AS is 1.76 times more volatile than Schouw Co. It trades about 0.07 of its potential returns per unit of risk. Schouw Co is currently generating about 0.02 per unit of risk. If you would invest 3,810 in SKAKO AS on August 29, 2024 and sell it today you would earn a total of 3,870 from holding SKAKO AS or generate 101.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKAKO AS vs. Schouw Co
Performance |
| Timeline |
| SKAKO AS |
| Schouw |
SKAKO AS and Schouw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKAKO AS and Schouw
The main advantage of trading using opposite SKAKO AS and Schouw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKAKO AS position performs unexpectedly, Schouw 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 Schouw will offset losses from the drop in Schouw's long position.| SKAKO AS vs. North Media AS | SKAKO AS vs. HH International AS | SKAKO AS vs. Per Aarsleff Holding | SKAKO AS vs. First Farms AS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |