Correlation Between Trelleborg and Resurs Holding
Can any of the company-specific risk be diversified away by investing in both Trelleborg and Resurs Holding 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 Trelleborg and Resurs Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trelleborg AB and Resurs Holding AB, you can compare the effects of market volatilities on Trelleborg and Resurs Holding 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 Trelleborg with a short position of Resurs Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trelleborg and Resurs Holding.
Diversification Opportunities for Trelleborg and Resurs Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trelleborg and Resurs is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Trelleborg AB and Resurs Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resurs Holding AB and Trelleborg 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 Trelleborg AB are associated (or correlated) with Resurs Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resurs Holding AB has no effect on the direction of Trelleborg i.e., Trelleborg and Resurs Holding go up and down completely randomly.
Pair Corralation between Trelleborg and Resurs Holding
If you would invest 36,200 in Trelleborg AB on September 13, 2024 and sell it today you would earn a total of 3,880 from holding Trelleborg AB or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trelleborg AB vs. Resurs Holding AB
Performance |
| Timeline |
| Trelleborg AB |
| Resurs Holding AB |
Trelleborg and Resurs Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trelleborg and Resurs Holding
The main advantage of trading using opposite Trelleborg and Resurs Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trelleborg position performs unexpectedly, Resurs Holding 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 Resurs Holding will offset losses from the drop in Resurs Holding's long position.| Trelleborg vs. AB SKF | Trelleborg vs. Sandvik AB | Trelleborg vs. Alfa Laval AB | Trelleborg vs. Husqvarna AB |
| Resurs Holding vs. Koninklijke Heijmans NV | Resurs Holding vs. Trelleborg AB | Resurs Holding vs. Ferronordic AB | Resurs Holding vs. KABE 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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