Correlation Between Soder Sportfiske and Swedencare Publ
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Swedencare Publ 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 Swedencare Publ 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 Swedencare publ AB, you can compare the effects of market volatilities on Soder Sportfiske and Swedencare Publ 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 Swedencare Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Swedencare Publ.
Diversification Opportunities for Soder Sportfiske and Swedencare Publ
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soder and Swedencare is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Swedencare publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedencare publ 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 Swedencare Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedencare publ AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Swedencare Publ go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Swedencare Publ
Assuming the 90 days trading horizon Soder Sportfiske is expected to generate 3.76 times less return on investment than Swedencare Publ. In addition to that, Soder Sportfiske is 1.86 times more volatile than Swedencare publ AB. It trades about 0.03 of its total potential returns per unit of risk. Swedencare publ AB is currently generating about 0.19 per unit of volatility. If you would invest 4,274 in Swedencare publ AB on September 3, 2024 and sell it today you would earn a total of 686.00 from holding Swedencare publ AB or generate 16.05% 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. Swedencare publ AB
Performance |
| Timeline |
| Soder Sportfiske |
| Swedencare publ AB |
Soder Sportfiske and Swedencare Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and Swedencare Publ
The main advantage of trading using opposite Soder Sportfiske and Swedencare Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, Swedencare Publ 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 Swedencare Publ will offset losses from the drop in Swedencare Publ's long position.| Soder Sportfiske vs. Truecaller AB | Soder Sportfiske vs. Dedicare AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. AddLife AB |
| Swedencare Publ vs. Svenska Handelsbanken AB | Swedencare Publ vs. Soder Sportfiske AB | Swedencare Publ vs. Nexam Chemical Holding | Swedencare Publ vs. SaveLend Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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