Correlation Between Svolder AB and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Svolder AB and Kinnevik Investment 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 Svolder AB and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svolder AB and Kinnevik Investment AB, you can compare the effects of market volatilities on Svolder AB and Kinnevik Investment 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 Svolder AB with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svolder AB and Kinnevik Investment.
Diversification Opportunities for Svolder AB and Kinnevik Investment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Svolder and Kinnevik is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Svolder AB and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Svolder 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 Svolder AB are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Svolder AB i.e., Svolder AB and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Svolder AB and Kinnevik Investment
Assuming the 90 days trading horizon Svolder AB is expected to generate 0.73 times more return on investment than Kinnevik Investment. However, Svolder AB is 1.37 times less risky than Kinnevik Investment. It trades about 0.0 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.04 per unit of risk. If you would invest 5,659 in Svolder AB on September 13, 2024 and sell it today you would lose (424.00) from holding Svolder AB or give up 7.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svolder AB vs. Kinnevik Investment AB
Performance |
| Timeline |
| Svolder AB |
| Kinnevik Investment |
Svolder AB and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svolder AB and Kinnevik Investment
The main advantage of trading using opposite Svolder AB and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svolder AB position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Svolder AB vs. Investment AB Latour | Svolder AB vs. Bure Equity AB | Svolder AB vs. Kinnevik Investment AB | Svolder AB vs. Industrivarden AB ser |
| Kinnevik Investment vs. Catella AB | Kinnevik Investment vs. Catella AB A | Kinnevik Investment vs. KABE Group AB | Kinnevik Investment vs. IAR Systems Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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