Correlation Between SSAB AB and Robit Oyj
Can any of the company-specific risk be diversified away by investing in both SSAB AB and Robit Oyj 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 Robit Oyj 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 Robit Oyj, you can compare the effects of market volatilities on SSAB AB and Robit Oyj 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 Robit Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and Robit Oyj.
Diversification Opportunities for SSAB AB and Robit Oyj
Very good diversification
The 3 months correlation between SSAB and Robit is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and Robit Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robit 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 Robit Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robit Oyj has no effect on the direction of SSAB AB i.e., SSAB AB and Robit Oyj go up and down completely randomly.
Pair Corralation between SSAB AB and Robit Oyj
Assuming the 90 days trading horizon SSAB AB ser is expected to under-perform the Robit Oyj. In addition to that, SSAB AB is 1.69 times more volatile than Robit Oyj. It trades about -0.04 of its total potential returns per unit of risk. Robit Oyj is currently generating about -0.06 per unit of volatility. If you would invest 138.00 in Robit Oyj on August 30, 2024 and sell it today you would lose (3.00) from holding Robit Oyj or give up 2.17% 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. Robit Oyj
Performance |
| Timeline |
| SSAB AB ser |
| Robit Oyj |
SSAB AB and Robit Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and Robit Oyj
The main advantage of trading using opposite SSAB AB and Robit Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, Robit Oyj 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 Robit Oyj will offset losses from the drop in Robit Oyj'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 |
| Robit Oyj vs. Telefonaktiebolaget LM Ericsson | Robit Oyj vs. SSAB AB ser | Robit Oyj vs. SSAB AB ser | Robit Oyj 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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