Correlation Between Stenocare and Scandinavian Brake
Can any of the company-specific risk be diversified away by investing in both Stenocare and Scandinavian Brake 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 Stenocare and Scandinavian Brake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stenocare AS and Scandinavian Brake Systems, you can compare the effects of market volatilities on Stenocare and Scandinavian Brake 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 Stenocare with a short position of Scandinavian Brake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stenocare and Scandinavian Brake.
Diversification Opportunities for Stenocare and Scandinavian Brake
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stenocare and Scandinavian is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Stenocare AS and Scandinavian Brake Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Brake and Stenocare 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 Stenocare AS are associated (or correlated) with Scandinavian Brake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Brake has no effect on the direction of Stenocare i.e., Stenocare and Scandinavian Brake go up and down completely randomly.
Pair Corralation between Stenocare and Scandinavian Brake
If you would invest 1,220 in Scandinavian Brake Systems on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Scandinavian Brake Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stenocare AS vs. Scandinavian Brake Systems
Performance |
| Timeline |
| Stenocare AS |
| Scandinavian Brake |
Stenocare and Scandinavian Brake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stenocare and Scandinavian Brake
The main advantage of trading using opposite Stenocare and Scandinavian Brake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stenocare position performs unexpectedly, Scandinavian Brake 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 Scandinavian Brake will offset losses from the drop in Scandinavian Brake's long position.| Stenocare vs. FOM Technologies AS | Stenocare vs. PARKEN Sport Entertainment | Stenocare vs. Strategic Investments AS | Stenocare vs. Prime Office AS |
| Scandinavian Brake vs. SKAKO AS | Scandinavian Brake vs. Newcap Holding AS | Scandinavian Brake vs. Columbus AS | Scandinavian Brake vs. Rovsing AS |
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 Stocks Directory module to find actively traded stocks across global markets.
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