Correlation Between SSAB AB and 24SevenOffice Scandinavia
Can any of the company-specific risk be diversified away by investing in both SSAB AB and 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSAB AB and 24SevenOffice Scandinavia AB, you can compare the effects of market volatilities on SSAB AB and 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and 24SevenOffice Scandinavia.
Diversification Opportunities for SSAB AB and 24SevenOffice Scandinavia
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSAB and 24SevenOffice is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB and 24SevenOffice Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 24SevenOffice Scandinavia has no effect on the direction of SSAB AB i.e., SSAB AB and 24SevenOffice Scandinavia go up and down completely randomly.
Pair Corralation between SSAB AB and 24SevenOffice Scandinavia
Assuming the 90 days trading horizon SSAB AB is expected to under-perform the 24SevenOffice Scandinavia. But the stock apears to be less risky and, when comparing its historical volatility, SSAB AB is 1.9 times less risky than 24SevenOffice Scandinavia. The stock trades about -0.01 of its potential returns per unit of risk. The 24SevenOffice Scandinavia AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 339.00 in 24SevenOffice Scandinavia AB on October 30, 2024 and sell it today you would earn a total of 1,596 from holding 24SevenOffice Scandinavia AB or generate 470.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAB AB vs. 24SevenOffice Scandinavia AB
Performance |
| Timeline |
| SSAB AB |
| 24SevenOffice Scandinavia |
SSAB AB and 24SevenOffice Scandinavia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and 24SevenOffice Scandinavia
The main advantage of trading using opposite SSAB AB and 24SevenOffice Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia will offset losses from the drop in 24SevenOffice Scandinavia's long position.| SSAB AB vs. Boliden AB | SSAB AB vs. SSAB AB | SSAB AB vs. Tele2 AB | SSAB AB vs. Samhllsbyggnadsbolaget i Norden |
| 24SevenOffice Scandinavia vs. Humble Group AB | 24SevenOffice Scandinavia vs. Enad Global 7 | 24SevenOffice Scandinavia vs. Goodbye Kansas Group | 24SevenOffice Scandinavia vs. KABE 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 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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