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 ser and SSAB AB ser, 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
Almost no diversification
The 3 months correlation between SSAB and SSAB is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and SSAB AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB ser 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 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 ser 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 ser is expected to under-perform the SSAB AB. But the stock apears to be less risky and, when comparing its historical volatility, SSAB AB ser is 1.07 times less risky than SSAB AB. The stock trades about -0.04 of its potential returns per unit of risk. The SSAB AB ser is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 445.00 in SSAB AB ser on August 30, 2024 and sell it today you would lose (12.00) from holding SSAB AB ser or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SSAB AB ser vs. SSAB AB ser
Performance |
| Timeline |
| SSAB AB ser |
| SSAB AB ser |
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.| SSAB AB vs. SSAB AB ser | SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Metsa Board Oyj | SSAB AB vs. Telia Company AB |
| SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Nordea Bank Abp | SSAB AB vs. Telia Company AB | SSAB AB vs. Wartsila Oyj Abp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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