Correlation Between Svedbergs and ProfilGruppen
Can any of the company-specific risk be diversified away by investing in both Svedbergs and ProfilGruppen 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 Svedbergs and ProfilGruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svedbergs i Dalstorp and ProfilGruppen AB, you can compare the effects of market volatilities on Svedbergs and ProfilGruppen 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 Svedbergs with a short position of ProfilGruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svedbergs and ProfilGruppen.
Diversification Opportunities for Svedbergs and ProfilGruppen
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Svedbergs and ProfilGruppen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Svedbergs i Dalstorp and ProfilGruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProfilGruppen AB and Svedbergs 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 Svedbergs i Dalstorp are associated (or correlated) with ProfilGruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProfilGruppen AB has no effect on the direction of Svedbergs i.e., Svedbergs and ProfilGruppen go up and down completely randomly.
Pair Corralation between Svedbergs and ProfilGruppen
Assuming the 90 days trading horizon Svedbergs i Dalstorp is expected to generate 1.3 times more return on investment than ProfilGruppen. However, Svedbergs is 1.3 times more volatile than ProfilGruppen AB. It trades about 0.01 of its potential returns per unit of risk. ProfilGruppen AB is currently generating about -0.07 per unit of risk. If you would invest 4,123 in Svedbergs i Dalstorp on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Svedbergs i Dalstorp or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svedbergs i Dalstorp vs. ProfilGruppen AB
Performance |
| Timeline |
| Svedbergs i Dalstorp |
| ProfilGruppen AB |
Svedbergs and ProfilGruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svedbergs and ProfilGruppen
The main advantage of trading using opposite Svedbergs and ProfilGruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svedbergs position performs unexpectedly, ProfilGruppen 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 ProfilGruppen will offset losses from the drop in ProfilGruppen's long position.| Svedbergs vs. Systemair AB | Svedbergs vs. Softronic AB | Svedbergs vs. Inwido AB | Svedbergs vs. Lindab International AB |
| ProfilGruppen vs. Svedbergs i Dalstorp | ProfilGruppen vs. Softronic AB | ProfilGruppen vs. Novotek AB | ProfilGruppen vs. Prevas 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |