Correlation Between United Tennessee and Swedbank
Can any of the company-specific risk be diversified away by investing in both United Tennessee and Swedbank 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 United Tennessee and Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Tennessee Bankshares and Swedbank AB, you can compare the effects of market volatilities on United Tennessee and Swedbank 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 United Tennessee with a short position of Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Tennessee and Swedbank.
Diversification Opportunities for United Tennessee and Swedbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Swedbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Tennessee Bankshares and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB and United Tennessee 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 United Tennessee Bankshares are associated (or correlated) with Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of United Tennessee i.e., United Tennessee and Swedbank go up and down completely randomly.
Pair Corralation between United Tennessee and Swedbank
If you would invest 1,750 in United Tennessee Bankshares on August 26, 2024 and sell it today you would earn a total of 0.00 from holding United Tennessee Bankshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
United Tennessee Bankshares vs. Swedbank AB
Performance |
| Timeline |
| United Tennessee Ban |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Swedbank AB |
United Tennessee and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Tennessee and Swedbank
The main advantage of trading using opposite United Tennessee and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Tennessee position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank's long position.| United Tennessee vs. United Bancorporation of | United Tennessee vs. Tri County Financial Group | United Tennessee vs. Quaint Oak Bancorp |
| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
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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