Correlation Between Systemair and Metacon AB
Can any of the company-specific risk be diversified away by investing in both Systemair and Metacon AB 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 Metacon AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Metacon AB, you can compare the effects of market volatilities on Systemair and Metacon AB 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 Metacon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Metacon AB.
Diversification Opportunities for Systemair and Metacon AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Systemair and Metacon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Metacon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metacon AB 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 Metacon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metacon AB has no effect on the direction of Systemair i.e., Systemair and Metacon AB go up and down completely randomly.
Pair Corralation between Systemair and Metacon AB
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.44 times more return on investment than Metacon AB. However, Systemair AB is 2.25 times less risky than Metacon AB. It trades about -0.12 of its potential returns per unit of risk. Metacon AB is currently generating about -0.32 per unit of risk. If you would invest 8,810 in Systemair AB on November 7, 2024 and sell it today you would lose (500.00) from holding Systemair AB or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Metacon AB
Performance |
| Timeline |
| Systemair AB |
| Metacon AB |
Systemair and Metacon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Metacon AB
The main advantage of trading using opposite Systemair and Metacon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Metacon AB 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 Metacon AB will offset losses from the drop in Metacon AB's long position.| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group AB |
| Metacon AB vs. FormPipe Software AB | Metacon AB vs. Sdiptech AB | Metacon AB vs. White Pearl Technology | Metacon AB vs. SolTech Energy Sweden |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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