Correlation Between Systemair and Online Brands
Can any of the company-specific risk be diversified away by investing in both Systemair and Online Brands 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 Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Online Brands Nordic, you can compare the effects of market volatilities on Systemair and Online Brands 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 Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Online Brands.
Diversification Opportunities for Systemair and Online Brands
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Systemair and Online is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic 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 Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of Systemair i.e., Systemair and Online Brands go up and down completely randomly.
Pair Corralation between Systemair and Online Brands
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.45 times more return on investment than Online Brands. However, Systemair AB is 2.2 times less risky than Online Brands. It trades about 0.03 of its potential returns per unit of risk. Online Brands Nordic is currently generating about 0.0 per unit of risk. If you would invest 8,089 in Systemair AB on August 31, 2024 and sell it today you would earn a total of 1,061 from holding Systemair AB or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Systemair AB vs. Online Brands Nordic
Performance |
| Timeline |
| Systemair AB |
| Online Brands Nordic |
Systemair and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Online Brands
The main advantage of trading using opposite Systemair and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group AB |
| Online Brands vs. NetJobs Group AB | Online Brands vs. Mantex AB | Online Brands vs. Doxa AB | Online Brands vs. Clean Motion 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |