Correlation Between Swedbank and China Minsh
Can any of the company-specific risk be diversified away by investing in both Swedbank and China Minsh 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 Swedbank and China Minsh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and China Minsh, you can compare the effects of market volatilities on Swedbank and China Minsh 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 Swedbank with a short position of China Minsh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and China Minsh.
Diversification Opportunities for Swedbank and China Minsh
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swedbank and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and China Minsh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsh and Swedbank 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 Swedbank AB are associated (or correlated) with China Minsh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsh has no effect on the direction of Swedbank i.e., Swedbank and China Minsh go up and down completely randomly.
Pair Corralation between Swedbank and China Minsh
Assuming the 90 days horizon Swedbank is expected to generate 5.99 times less return on investment than China Minsh. But when comparing it to its historical volatility, Swedbank AB is 3.91 times less risky than China Minsh. It trades about 0.03 of its potential returns per unit of risk. China Minsh is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 282.00 in China Minsh on November 2, 2024 and sell it today you would earn a total of 194.00 from holding China Minsh or generate 68.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.99% |
| Values | Daily Returns |
Swedbank AB vs. China Minsh
Performance |
| Timeline |
| Swedbank AB |
| China Minsh |
Swedbank and China Minsh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and China Minsh
The main advantage of trading using opposite Swedbank and China Minsh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, China Minsh 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 China Minsh will offset losses from the drop in China Minsh's long position.| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
| China Minsh vs. Hancock Whitney Corp | China Minsh vs. First Hawaiian | China Minsh vs. DBS Group Holdings | China Minsh vs. United Overseas Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |