Correlation Between Soder Sportfiske and Havsfrun Investment
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Havsfrun Investment 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 Havsfrun Investment 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 Havsfrun Investment AB, you can compare the effects of market volatilities on Soder Sportfiske and Havsfrun Investment 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 Havsfrun Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Havsfrun Investment.
Diversification Opportunities for Soder Sportfiske and Havsfrun Investment
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soder and Havsfrun is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Havsfrun Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havsfrun Investment 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 Havsfrun Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havsfrun Investment has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Havsfrun Investment go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Havsfrun Investment
Assuming the 90 days trading horizon Soder Sportfiske is expected to generate 1.04 times less return on investment than Havsfrun Investment. In addition to that, Soder Sportfiske is 1.09 times more volatile than Havsfrun Investment AB. It trades about 0.02 of its total potential returns per unit of risk. Havsfrun Investment AB is currently generating about 0.02 per unit of volatility. If you would invest 1,196 in Havsfrun Investment AB on August 30, 2024 and sell it today you would earn a total of 84.00 from holding Havsfrun Investment AB or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soder Sportfiske AB vs. Havsfrun Investment AB
Performance |
| Timeline |
| Soder Sportfiske |
| Havsfrun Investment |
Soder Sportfiske and Havsfrun Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and Havsfrun Investment
The main advantage of trading using opposite Soder Sportfiske and Havsfrun Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, Havsfrun Investment 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 Havsfrun Investment will offset losses from the drop in Havsfrun Investment's long position.| Soder Sportfiske vs. Awardit AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. MIPS AB | Soder Sportfiske vs. Smart Eye AB |
| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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