Correlation Between Swedbank and High Coast
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By analyzing existing cross correlation between Swedbank AB and High Coast Distillery, you can compare the effects of market volatilities on Swedbank and High Coast 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 High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and High Coast.
Diversification Opportunities for Swedbank and High Coast
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedbank and High is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery 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 High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of Swedbank i.e., Swedbank and High Coast go up and down completely randomly.
Pair Corralation between Swedbank and High Coast
Assuming the 90 days trading horizon Swedbank AB is expected to generate 0.42 times more return on investment than High Coast. However, Swedbank AB is 2.39 times less risky than High Coast. It trades about 0.07 of its potential returns per unit of risk. High Coast Distillery is currently generating about 0.01 per unit of risk. If you would invest 19,659 in Swedbank AB on November 4, 2024 and sell it today you would earn a total of 4,491 from holding Swedbank AB or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. High Coast Distillery
Performance |
| Timeline |
| Swedbank AB |
| High Coast Distillery |
Swedbank and High Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and High Coast
The main advantage of trading using opposite Swedbank and High Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, High Coast 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 High Coast will offset losses from the drop in High Coast's long position.| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 AB |
| High Coast vs. Lime Technologies AB | High Coast vs. Sdiptech AB | High Coast vs. Fractal Gaming Group | High Coast vs. Spago Nanomedical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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