Correlation Between SaveLend Group and 24SevenOffice Scandinavia
Can any of the company-specific risk be diversified away by investing in both SaveLend Group and 24SevenOffice Scandinavia 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 SaveLend Group and 24SevenOffice Scandinavia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaveLend Group AB and 24SevenOffice Scandinavia AB, you can compare the effects of market volatilities on SaveLend Group and 24SevenOffice Scandinavia 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 SaveLend Group with a short position of 24SevenOffice Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and 24SevenOffice Scandinavia.
Diversification Opportunities for SaveLend Group and 24SevenOffice Scandinavia
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SaveLend and 24SevenOffice is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and 24SevenOffice Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 24SevenOffice Scandinavia and SaveLend Group 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 SaveLend Group AB are associated (or correlated) with 24SevenOffice Scandinavia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 24SevenOffice Scandinavia has no effect on the direction of SaveLend Group i.e., SaveLend Group and 24SevenOffice Scandinavia go up and down completely randomly.
Pair Corralation between SaveLend Group and 24SevenOffice Scandinavia
Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the 24SevenOffice Scandinavia. In addition to that, SaveLend Group is 5.97 times more volatile than 24SevenOffice Scandinavia AB. It trades about -0.07 of its total potential returns per unit of risk. 24SevenOffice Scandinavia AB is currently generating about -0.09 per unit of volatility. If you would invest 2,370 in 24SevenOffice Scandinavia AB on September 3, 2024 and sell it today you would lose (30.00) from holding 24SevenOffice Scandinavia AB or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. 24SevenOffice Scandinavia AB
Performance |
| Timeline |
| SaveLend Group AB |
| 24SevenOffice Scandinavia |
SaveLend Group and 24SevenOffice Scandinavia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and 24SevenOffice Scandinavia
The main advantage of trading using opposite SaveLend Group and 24SevenOffice Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group position performs unexpectedly, 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia will offset losses from the drop in 24SevenOffice Scandinavia's long position.| SaveLend Group vs. Smart Eye AB | SaveLend Group vs. Nepa AB | SaveLend Group vs. MAG Interactive AB | SaveLend Group vs. Hexatronic Group AB |
| 24SevenOffice Scandinavia vs. Viva Wine Group | 24SevenOffice Scandinavia vs. Nexam Chemical Holding | 24SevenOffice Scandinavia vs. Fractal Gaming Group | 24SevenOffice Scandinavia vs. White Pearl Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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