Correlation Between SSAB AB and Lassila Tikanoja
Can any of the company-specific risk be diversified away by investing in both SSAB AB and Lassila Tikanoja 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 Lassila Tikanoja 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 Lassila Tikanoja Oyj, you can compare the effects of market volatilities on SSAB AB and Lassila Tikanoja 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 Lassila Tikanoja. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and Lassila Tikanoja.
Diversification Opportunities for SSAB AB and Lassila Tikanoja
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSAB and Lassila is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and Lassila Tikanoja Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lassila Tikanoja Oyj 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 Lassila Tikanoja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lassila Tikanoja Oyj has no effect on the direction of SSAB AB i.e., SSAB AB and Lassila Tikanoja go up and down completely randomly.
Pair Corralation between SSAB AB and Lassila Tikanoja
Assuming the 90 days trading horizon SSAB AB ser is expected to generate 4.27 times more return on investment than Lassila Tikanoja. However, SSAB AB is 4.27 times more volatile than Lassila Tikanoja Oyj. It trades about 0.0 of its potential returns per unit of risk. Lassila Tikanoja Oyj is currently generating about -0.42 per unit of risk. If you would invest 451.00 in SSAB AB ser on August 30, 2024 and sell it today you would lose (2.00) from holding SSAB AB ser or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAB AB ser vs. Lassila Tikanoja Oyj
Performance |
| Timeline |
| SSAB AB ser |
| Lassila Tikanoja Oyj |
SSAB AB and Lassila Tikanoja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and Lassila Tikanoja
The main advantage of trading using opposite SSAB AB and Lassila Tikanoja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, Lassila Tikanoja 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 Lassila Tikanoja will offset losses from the drop in Lassila Tikanoja'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 |
| Lassila Tikanoja vs. Telefonaktiebolaget LM Ericsson | Lassila Tikanoja vs. SSAB AB ser | Lassila Tikanoja vs. SSAB AB ser | Lassila Tikanoja vs. Telia Company 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |