Correlation Between Swedbank and Soder Sportfiske
Can any of the company-specific risk be diversified away by investing in both Swedbank and Soder Sportfiske 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 Soder Sportfiske into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Soder Sportfiske AB, you can compare the effects of market volatilities on Swedbank and Soder Sportfiske 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 Soder Sportfiske. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Soder Sportfiske.
Diversification Opportunities for Swedbank and Soder Sportfiske
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swedbank and Soder is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and Soder Sportfiske AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soder Sportfiske 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 Soder Sportfiske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soder Sportfiske has no effect on the direction of Swedbank i.e., Swedbank and Soder Sportfiske go up and down completely randomly.
Pair Corralation between Swedbank and Soder Sportfiske
Assuming the 90 days trading horizon Swedbank AB is expected to under-perform the Soder Sportfiske. But the stock apears to be less risky and, when comparing its historical volatility, Swedbank AB is 2.66 times less risky than Soder Sportfiske. The stock trades about -0.06 of its potential returns per unit of risk. The Soder Sportfiske AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,700 in Soder Sportfiske AB on August 31, 2024 and sell it today you would lose (20.00) from holding Soder Sportfiske AB or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Swedbank AB vs. Soder Sportfiske AB
Performance |
| Timeline |
| Swedbank AB |
| Soder Sportfiske |
Swedbank and Soder Sportfiske Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and Soder Sportfiske
The main advantage of trading using opposite Swedbank and Soder Sportfiske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, Soder Sportfiske 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 Soder Sportfiske will offset losses from the drop in Soder Sportfiske's long position.| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 AB | Swedbank vs. H M Hennes |
| Soder Sportfiske vs. Truecaller AB | Soder Sportfiske vs. Dedicare AB | Soder Sportfiske vs. RVRC Holding AB | Soder Sportfiske vs. AddLife 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |