Correlation Between Systemair and Sdiptech
Can any of the company-specific risk be diversified away by investing in both Systemair and Sdiptech 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 Sdiptech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Sdiptech AB, you can compare the effects of market volatilities on Systemair and Sdiptech 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 Sdiptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Sdiptech.
Diversification Opportunities for Systemair and Sdiptech
Very good diversification
The 3 months correlation between Systemair and Sdiptech is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Sdiptech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sdiptech 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 Sdiptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sdiptech AB has no effect on the direction of Systemair i.e., Systemair and Sdiptech go up and down completely randomly.
Pair Corralation between Systemair and Sdiptech
Assuming the 90 days trading horizon Systemair AB is expected to generate 1.28 times more return on investment than Sdiptech. However, Systemair is 1.28 times more volatile than Sdiptech AB. It trades about 0.23 of its potential returns per unit of risk. Sdiptech AB is currently generating about -0.07 per unit of risk. If you would invest 8,150 in Systemair AB on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Systemair AB or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Sdiptech AB
Performance |
| Timeline |
| Systemair AB |
| Sdiptech AB |
Systemair and Sdiptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Sdiptech
The main advantage of trading using opposite Systemair and Sdiptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Sdiptech 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 Sdiptech will offset losses from the drop in Sdiptech's long position.| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group AB |
| Sdiptech vs. Bergman Beving AB | Sdiptech vs. FM Mattsson Mora | Sdiptech vs. Systemair AB | Sdiptech vs. Garo 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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