Correlation Between SSAB AB and Aktia Bank
Can any of the company-specific risk be diversified away by investing in both SSAB AB and Aktia Bank 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 Aktia Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSAB AB ser and Aktia Bank Abp, you can compare the effects of market volatilities on SSAB AB and Aktia Bank 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 Aktia Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and Aktia Bank.
Diversification Opportunities for SSAB AB and Aktia Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SSAB and Aktia is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and Aktia Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aktia Bank Abp 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 ser are associated (or correlated) with Aktia Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aktia Bank Abp has no effect on the direction of SSAB AB i.e., SSAB AB and Aktia Bank go up and down completely randomly.
Pair Corralation between SSAB AB and Aktia Bank
Assuming the 90 days trading horizon SSAB AB ser is expected to generate 5.71 times more return on investment than Aktia Bank. However, SSAB AB is 5.71 times more volatile than Aktia Bank Abp. It trades about 0.02 of its potential returns per unit of risk. Aktia Bank Abp is currently generating about -0.1 per unit of risk. If you would invest 446.00 in SSAB AB ser on September 4, 2024 and sell it today you would earn a total of 2.00 from holding SSAB AB ser or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAB AB ser vs. Aktia Bank Abp
Performance |
| Timeline |
| SSAB AB ser |
| Aktia Bank Abp |
SSAB AB and Aktia Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and Aktia Bank
The main advantage of trading using opposite SSAB AB and Aktia Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, Aktia Bank 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 Aktia Bank will offset losses from the drop in Aktia Bank's long position.| SSAB AB vs. SSAB AB ser | SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Metsa Board Oyj | SSAB AB vs. Telia Company AB |
| Aktia Bank vs. Sampo Oyj A | Aktia Bank vs. Tokmanni Group Oyj | Aktia Bank vs. Nordea Bank Abp | Aktia Bank vs. TietoEVRY Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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