Correlation Between SSAB AB and SSAB AB
Can any of the company-specific risk be diversified away by investing in both SSAB AB and SSAB AB 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 SSAB AB and SSAB AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSAB AB and SSAB AB, you can compare the effects of market volatilities on SSAB AB and SSAB AB 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 SSAB AB with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and SSAB AB.
Diversification Opportunities for SSAB AB and SSAB AB
No risk reduction
The 3 months correlation between SSAB and SSAB is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB and SSAB AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB and SSAB AB 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 SSAB AB are associated (or correlated) with SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB has no effect on the direction of SSAB AB i.e., SSAB AB and SSAB AB go up and down completely randomly.
Pair Corralation between SSAB AB and SSAB AB
Assuming the 90 days trading horizon SSAB AB is expected to generate 0.94 times more return on investment than SSAB AB. However, SSAB AB is 1.07 times less risky than SSAB AB. It trades about -0.08 of its potential returns per unit of risk. SSAB AB is currently generating about -0.07 per unit of risk. If you would invest 6,078 in SSAB AB on September 1, 2024 and sell it today you would lose (1,058) from holding SSAB AB or give up 17.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAB AB vs. SSAB AB
Performance |
| Timeline |
| SSAB AB |
| SSAB AB |
SSAB AB and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and SSAB AB
The main advantage of trading using opposite SSAB AB and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, SSAB AB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.The idea behind SSAB AB and SSAB AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SSAB AB vs. Boliden AB | SSAB AB vs. SSAB AB | SSAB AB vs. Tele2 AB | SSAB AB vs. Samhllsbyggnadsbolaget i Norden |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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