Correlation Between Systemair and Koggbron
Can any of the company-specific risk be diversified away by investing in both Systemair and Koggbron 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 Systemair and Koggbron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Koggbron, you can compare the effects of market volatilities on Systemair and Koggbron 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 Systemair with a short position of Koggbron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Koggbron.
Diversification Opportunities for Systemair and Koggbron
Pay attention - limited upside
The 3 months correlation between Systemair and Koggbron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Koggbron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koggbron and Systemair 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 Systemair AB are associated (or correlated) with Koggbron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koggbron has no effect on the direction of Systemair i.e., Systemair and Koggbron go up and down completely randomly.
Pair Corralation between Systemair and Koggbron
If you would invest 8,610 in Systemair AB on September 12, 2024 and sell it today you would earn a total of 1,170 from holding Systemair AB or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Systemair AB vs. Koggbron
Performance |
| Timeline |
| Systemair AB |
| Koggbron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Systemair and Koggbron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Koggbron
The main advantage of trading using opposite Systemair and Koggbron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Koggbron 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 Koggbron will offset losses from the drop in Koggbron's long position.| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group AB |
| Koggbron vs. Bio Works Technologies AB | Koggbron vs. Investment AB Oresund | Koggbron vs. Lohilo Foods AB | Koggbron vs. Kinnevik Investment 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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