Correlation Between TF Bank and Systemair
Can any of the company-specific risk be diversified away by investing in both TF Bank and Systemair 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 TF Bank and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TF Bank AB and Systemair AB, you can compare the effects of market volatilities on TF Bank and Systemair 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 TF Bank with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of TF Bank and Systemair.
Diversification Opportunities for TF Bank and Systemair
Weak diversification
The 3 months correlation between TFBANK and Systemair is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding TF Bank AB and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and TF Bank 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 TF Bank AB are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of TF Bank i.e., TF Bank and Systemair go up and down completely randomly.
Pair Corralation between TF Bank and Systemair
Assuming the 90 days trading horizon TF Bank is expected to generate 1.53 times less return on investment than Systemair. But when comparing it to its historical volatility, TF Bank AB is 1.5 times less risky than Systemair. It trades about 0.18 of its potential returns per unit of risk. Systemair AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,610 in Systemair AB on September 12, 2024 and sell it today you would earn a total of 1,170 from holding Systemair AB or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TF Bank AB vs. Systemair AB
Performance |
| Timeline |
| TF Bank AB |
| Systemair AB |
TF Bank and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TF Bank and Systemair
The main advantage of trading using opposite TF Bank and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TF Bank position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| TF Bank vs. Koninklijke Heijmans NV | TF Bank vs. Trelleborg AB | TF Bank vs. Ferronordic AB | TF Bank vs. KABE Group AB |
| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |