Correlation Between Soken Chemical and SEB SA
Can any of the company-specific risk be diversified away by investing in both Soken Chemical and SEB SA 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 Soken Chemical and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and SEB SA, you can compare the effects of market volatilities on Soken Chemical and SEB SA 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 Soken Chemical with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and SEB SA.
Diversification Opportunities for Soken Chemical and SEB SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and SEB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and Soken Chemical 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 Soken Chemical Engineering are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Soken Chemical i.e., Soken Chemical and SEB SA go up and down completely randomly.
Pair Corralation between Soken Chemical and SEB SA
If you would invest 1,266 in Soken Chemical Engineering on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Soken Chemical Engineering or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. SEB SA
Performance |
| Timeline |
| Soken Chemical Engin |
| SEB SA |
Soken Chemical and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and SEB SA
The main advantage of trading using opposite Soken Chemical and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Soken Chemical vs. Superior Plus Corp | Soken Chemical vs. SIVERS SEMICONDUCTORS AB | Soken Chemical vs. Norsk Hydro ASA | Soken Chemical vs. Reliance Steel Aluminum |
| SEB SA vs. Suntory Beverage Food | SEB SA vs. ScanSource | SEB SA vs. YOOMA WELLNESS INC | SEB SA vs. Natural Health Trends |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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