Correlation Between Soder Sportfiske and Profoto Holding
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Profoto Holding 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 Profoto Holding 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 Profoto Holding AB, you can compare the effects of market volatilities on Soder Sportfiske and Profoto Holding 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 Profoto Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Profoto Holding.
Diversification Opportunities for Soder Sportfiske and Profoto Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Soder and Profoto is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Profoto Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profoto Holding 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 Profoto Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profoto Holding AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Profoto Holding go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Profoto Holding
Assuming the 90 days trading horizon Soder Sportfiske AB is expected to generate 1.47 times more return on investment than Profoto Holding. However, Soder Sportfiske is 1.47 times more volatile than Profoto Holding AB. It trades about 0.36 of its potential returns per unit of risk. Profoto Holding AB is currently generating about 0.02 per unit of risk. If you would invest 2,540 in Soder Sportfiske AB on October 24, 2024 and sell it today you would earn a total of 780.00 from holding Soder Sportfiske AB or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soder Sportfiske AB vs. Profoto Holding AB
Performance |
| Timeline |
| Soder Sportfiske |
| Profoto Holding AB |
Soder Sportfiske and Profoto Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and Profoto Holding
The main advantage of trading using opposite Soder Sportfiske and Profoto Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, Profoto Holding 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 Profoto Holding will offset losses from the drop in Profoto Holding's long position.| Soder Sportfiske vs. Truecaller AB | Soder Sportfiske vs. Dedicare AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. AddLife AB |
| Profoto Holding vs. Peab AB | Profoto Holding vs. Axfood AB | Profoto Holding vs. Thule Group AB | Profoto Holding vs. Avanza Bank Holding |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |