Correlation Between Tatton Asset and SEB SA
Can any of the company-specific risk be diversified away by investing in both Tatton Asset and SEB SA 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 Tatton Asset and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tatton Asset Management and SEB SA, you can compare the effects of market volatilities on Tatton Asset and SEB SA 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 Tatton Asset with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tatton Asset and SEB SA.
Diversification Opportunities for Tatton Asset and SEB SA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tatton and SEB is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tatton Asset Management and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and Tatton Asset 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 Tatton Asset Management are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Tatton Asset i.e., Tatton Asset and SEB SA go up and down completely randomly.
Pair Corralation between Tatton Asset and SEB SA
Assuming the 90 days trading horizon Tatton Asset Management is expected to generate 0.61 times more return on investment than SEB SA. However, Tatton Asset Management is 1.63 times less risky than SEB SA. It trades about 0.12 of its potential returns per unit of risk. SEB SA is currently generating about -0.15 per unit of risk. If you would invest 67,277 in Tatton Asset Management on September 1, 2024 and sell it today you would earn a total of 2,123 from holding Tatton Asset Management or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tatton Asset Management vs. SEB SA
Performance |
| Timeline |
| Tatton Asset Management |
| SEB SA |
Tatton Asset and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tatton Asset and SEB SA
The main advantage of trading using opposite Tatton Asset and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatton Asset position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Tatton Asset vs. Fevertree Drinks Plc | Tatton Asset vs. Ross Stores | Tatton Asset vs. Compagnie Plastic Omnium | Tatton Asset vs. Impax Environmental Markets |
| SEB SA vs. bet at home AG | SEB SA vs. Ecofin Global Utilities | SEB SA vs. Home Depot | SEB SA vs. Westlake Chemical Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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