Correlation Between Swedbank and JLT Mobile
Can any of the company-specific risk be diversified away by investing in both Swedbank and JLT Mobile 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 JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and JLT Mobile Computers, you can compare the effects of market volatilities on Swedbank and JLT Mobile 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 JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and JLT Mobile.
Diversification Opportunities for Swedbank and JLT Mobile
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedbank and JLT is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and JLT Mobile Computers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT Mobile Computers 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 JLT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT Mobile Computers has no effect on the direction of Swedbank i.e., Swedbank and JLT Mobile go up and down completely randomly.
Pair Corralation between Swedbank and JLT Mobile
Assuming the 90 days trading horizon Swedbank AB is expected to generate 0.52 times more return on investment than JLT Mobile. However, Swedbank AB is 1.94 times less risky than JLT Mobile. It trades about -0.04 of its potential returns per unit of risk. JLT Mobile Computers is currently generating about -0.15 per unit of risk. If you would invest 21,620 in Swedbank AB on September 1, 2024 and sell it today you would lose (240.00) from holding Swedbank AB or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. JLT Mobile Computers
Performance |
| Timeline |
| Swedbank AB |
| JLT Mobile Computers |
Swedbank and JLT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and JLT Mobile
The main advantage of trading using opposite Swedbank and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, JLT Mobile 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 JLT Mobile will offset losses from the drop in JLT Mobile's long position.| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 AB |
| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Mekonomen AB | JLT Mobile vs. Embellence Group 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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