Correlation Between Sabien Technology and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and Skandinaviska Enskilda 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 Sabien Technology and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Sabien Technology and Skandinaviska Enskilda 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 Sabien Technology with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and Skandinaviska Enskilda.
Diversification Opportunities for Sabien Technology and Skandinaviska Enskilda
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabien and Skandinaviska is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Sabien Technology i.e., Sabien Technology and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Sabien Technology and Skandinaviska Enskilda
Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the Skandinaviska Enskilda. In addition to that, Sabien Technology is 2.95 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.2 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about -0.18 per unit of volatility. If you would invest 15,560 in Skandinaviska Enskilda Banken on August 30, 2024 and sell it today you would lose (580.00) from holding Skandinaviska Enskilda Banken or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sabien Technology Group vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Sabien Technology |
| Skandinaviska Enskilda |
Sabien Technology and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and Skandinaviska Enskilda
The main advantage of trading using opposite Sabien Technology and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Sabien Technology vs. Chocoladefabriken Lindt Spruengli | Sabien Technology vs. National Atomic Co | Sabien Technology vs. OTP Bank Nyrt | Sabien Technology vs. Samsung Electronics Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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