Correlation Between Soder Sportfiske and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Awardit AB 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 Soder Sportfiske and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soder Sportfiske AB and Awardit AB, you can compare the effects of market volatilities on Soder Sportfiske and Awardit AB 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 Soder Sportfiske with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Awardit AB.
Diversification Opportunities for Soder Sportfiske and Awardit AB
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Soder and Awardit is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and Soder Sportfiske 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 Soder Sportfiske AB are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Awardit AB go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Awardit AB
Assuming the 90 days trading horizon Soder Sportfiske AB is expected to under-perform the Awardit AB. In addition to that, Soder Sportfiske is 2.16 times more volatile than Awardit AB. It trades about -0.17 of its total potential returns per unit of risk. Awardit AB is currently generating about -0.03 per unit of volatility. If you would invest 13,150 in Awardit AB on August 25, 2024 and sell it today you would lose (150.00) from holding Awardit AB or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soder Sportfiske AB vs. Awardit AB
Performance |
| Timeline |
| Soder Sportfiske |
| Awardit AB |
Soder Sportfiske and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and Awardit AB
The main advantage of trading using opposite Soder Sportfiske and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB's long position.| Soder Sportfiske vs. Awardit AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. Smart Eye AB | Soder Sportfiske vs. KABE Group AB |
| Awardit AB vs. Catena Media plc | Awardit AB vs. Better Collective | Awardit AB vs. Betsson AB | Awardit AB vs. Kambi Group PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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