Correlation Between Soder Sportfiske and Investment
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and 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 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 Investment AB Oresund, you can compare the effects of market volatilities on Soder Sportfiske and 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Investment.
Diversification Opportunities for Soder Sportfiske and Investment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soder and Investment is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Investment AB Oresund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment AB Oresund 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment AB Oresund has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Investment go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Investment
Assuming the 90 days trading horizon Soder Sportfiske AB is expected to under-perform the Investment. In addition to that, Soder Sportfiske is 1.88 times more volatile than Investment AB Oresund. It trades about -0.11 of its total potential returns per unit of risk. Investment AB Oresund is currently generating about -0.11 per unit of volatility. If you would invest 11,580 in Investment AB Oresund on August 30, 2024 and sell it today you would lose (420.00) from holding Investment AB Oresund or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Soder Sportfiske AB vs. Investment AB Oresund
Performance |
| Timeline |
| Soder Sportfiske |
| Investment AB Oresund |
Soder Sportfiske and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and Investment
The main advantage of trading using opposite Soder Sportfiske and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, 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 Investment will offset losses from the drop in 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 |
| Investment vs. Bure Equity AB | Investment vs. Creades AB | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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