Correlation Between Swiss Life and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Swiss Life and Sampo Oyj 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 Swiss Life and Sampo Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Life Holding and Sampo Oyj, you can compare the effects of market volatilities on Swiss Life and Sampo Oyj 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 Swiss Life with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Life and Sampo Oyj.
Diversification Opportunities for Swiss Life and Sampo Oyj
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swiss and Sampo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and Sampo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj and Swiss Life 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 Swiss Life Holding are associated (or correlated) with Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj has no effect on the direction of Swiss Life i.e., Swiss Life and Sampo Oyj go up and down completely randomly.
Pair Corralation between Swiss Life and Sampo Oyj
Assuming the 90 days horizon Swiss Life Holding is expected to generate 1.17 times more return on investment than Sampo Oyj. However, Swiss Life is 1.17 times more volatile than Sampo Oyj. It trades about 0.11 of its potential returns per unit of risk. Sampo Oyj is currently generating about 0.0 per unit of risk. If you would invest 3,901 in Swiss Life Holding on October 22, 2024 and sell it today you would earn a total of 108.00 from holding Swiss Life Holding or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Life Holding vs. Sampo Oyj
Performance |
| Timeline |
| Swiss Life Holding |
| Sampo Oyj |
Swiss Life and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Life and Sampo Oyj
The main advantage of trading using opposite Swiss Life and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Life position performs unexpectedly, Sampo Oyj 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.| Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Allianz SE | Swiss Life vs. Swiss Life Holding | Swiss Life vs. Zurich Insurance Group |
| Sampo Oyj vs. ageas SANV | Sampo Oyj vs. NN Group NV | Sampo Oyj vs. Athene Holding | Sampo Oyj vs. Assicurazioni Generali SpA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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