Correlation Between Scandinavian Tobacco and 09256BAG2
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By analyzing existing cross correlation between Scandinavian Tobacco Group and US09256BAG23, you can compare the effects of market volatilities on Scandinavian Tobacco and 09256BAG2 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 Scandinavian Tobacco with a short position of 09256BAG2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and 09256BAG2.
Diversification Opportunities for Scandinavian Tobacco and 09256BAG2
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scandinavian and 09256BAG2 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and US09256BAG23 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US09256BAG23 and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with 09256BAG2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US09256BAG23 has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and 09256BAG2 go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and 09256BAG2
Assuming the 90 days horizon Scandinavian Tobacco Group is expected to generate 0.81 times more return on investment than 09256BAG2. However, Scandinavian Tobacco Group is 1.23 times less risky than 09256BAG2. It trades about 0.02 of its potential returns per unit of risk. US09256BAG23 is currently generating about 0.01 per unit of risk. If you would invest 664.00 in Scandinavian Tobacco Group on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Scandinavian Tobacco Group or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. US09256BAG23
Performance |
| Timeline |
| Scandinavian Tobacco |
| US09256BAG23 |
Scandinavian Tobacco and 09256BAG2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and 09256BAG2
The main advantage of trading using opposite Scandinavian Tobacco and 09256BAG2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, 09256BAG2 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 09256BAG2 will offset losses from the drop in 09256BAG2's long position.| Scandinavian Tobacco vs. Imperial Brands PLC | Scandinavian Tobacco vs. RLX Technology | Scandinavian Tobacco vs. British American Tobacco | Scandinavian Tobacco vs. Turning Point Brands |
| 09256BAG2 vs. Ambev SA ADR | 09256BAG2 vs. Radcom | 09256BAG2 vs. Scandinavian Tobacco Group | 09256BAG2 vs. Senmiao Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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