Correlation Between Storskogen Group and Synsam AB
Can any of the company-specific risk be diversified away by investing in both Storskogen Group and Synsam 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 Storskogen Group and Synsam AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storskogen Group AB and Synsam AB, you can compare the effects of market volatilities on Storskogen Group and Synsam 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 Storskogen Group with a short position of Synsam AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storskogen Group and Synsam AB.
Diversification Opportunities for Storskogen Group and Synsam AB
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Storskogen and Synsam is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Storskogen Group AB and Synsam AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synsam AB and Storskogen Group 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 Storskogen Group AB are associated (or correlated) with Synsam AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synsam AB has no effect on the direction of Storskogen Group i.e., Storskogen Group and Synsam AB go up and down completely randomly.
Pair Corralation between Storskogen Group and Synsam AB
Assuming the 90 days trading horizon Storskogen Group AB is expected to generate 1.89 times more return on investment than Synsam AB. However, Storskogen Group is 1.89 times more volatile than Synsam AB. It trades about 0.04 of its potential returns per unit of risk. Synsam AB is currently generating about 0.02 per unit of risk. If you would invest 827.00 in Storskogen Group AB on September 3, 2024 and sell it today you would earn a total of 301.00 from holding Storskogen Group AB or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storskogen Group AB vs. Synsam AB
Performance |
| Timeline |
| Storskogen Group |
| Synsam AB |
Storskogen Group and Synsam AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storskogen Group and Synsam AB
The main advantage of trading using opposite Storskogen Group and Synsam AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storskogen Group position performs unexpectedly, Synsam 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 Synsam AB will offset losses from the drop in Synsam AB's long position.| Storskogen Group vs. L E Lundbergfretagen | Storskogen Group vs. Industrivarden AB ser | Storskogen Group vs. Svenska Handelsbanken AB | Storskogen Group vs. Investment AB Latour |
| Synsam AB vs. Nordnet AB | Synsam AB vs. Storskogen Group AB | Synsam AB vs. Truecaller AB | Synsam AB vs. Peab 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |