Correlation Between Unibap AB and Scibase AB
Can any of the company-specific risk be diversified away by investing in both Unibap AB and Scibase AB 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 Unibap AB and Scibase AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibap AB and Scibase AB, you can compare the effects of market volatilities on Unibap AB and Scibase AB 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 Unibap AB with a short position of Scibase AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibap AB and Scibase AB.
Diversification Opportunities for Unibap AB and Scibase AB
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unibap and Scibase is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Unibap AB and Scibase AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scibase AB and Unibap AB 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 Unibap AB are associated (or correlated) with Scibase AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scibase AB has no effect on the direction of Unibap AB i.e., Unibap AB and Scibase AB go up and down completely randomly.
Pair Corralation between Unibap AB and Scibase AB
Assuming the 90 days trading horizon Unibap AB is expected to under-perform the Scibase AB. But the stock apears to be less risky and, when comparing its historical volatility, Unibap AB is 2.14 times less risky than Scibase AB. The stock trades about -0.02 of its potential returns per unit of risk. The Scibase AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Scibase AB on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Scibase AB or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibap AB vs. Scibase AB
Performance |
| Timeline |
| Unibap AB |
| Scibase AB |
Unibap AB and Scibase AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibap AB and Scibase AB
The main advantage of trading using opposite Unibap AB and Scibase AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibap AB position performs unexpectedly, Scibase AB 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 Scibase AB will offset losses from the drop in Scibase AB's long position.| Unibap AB vs. Acconeer AB | Unibap AB vs. BIMobject AB | Unibap AB vs. Gapwaves AB Series | Unibap AB vs. Sedana Medical AB |
| Scibase AB vs. Sprint Bioscience AB | Scibase AB vs. iZafe Group AB | Scibase AB vs. Idogen AB | Scibase AB 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 Stocks Directory module to find actively traded stocks across global markets.
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