Correlation Between SaveLend Group and Avanza Bank
Can any of the company-specific risk be diversified away by investing in both SaveLend Group and Avanza Bank 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 Avanza Bank 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 Avanza Bank Holding, you can compare the effects of market volatilities on SaveLend Group and Avanza Bank 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 Avanza Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and Avanza Bank.
Diversification Opportunities for SaveLend Group and Avanza Bank
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SaveLend and Avanza is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Avanza Bank Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanza Bank Holding 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 Avanza Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanza Bank Holding has no effect on the direction of SaveLend Group i.e., SaveLend Group and Avanza Bank go up and down completely randomly.
Pair Corralation between SaveLend Group and Avanza Bank
Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the Avanza Bank. In addition to that, SaveLend Group is 1.55 times more volatile than Avanza Bank Holding. It trades about -0.08 of its total potential returns per unit of risk. Avanza Bank Holding is currently generating about 0.03 per unit of volatility. If you would invest 23,281 in Avanza Bank Holding on October 23, 2024 and sell it today you would earn a total of 5,219 from holding Avanza Bank Holding or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. Avanza Bank Holding
Performance |
| Timeline |
| SaveLend Group AB |
| Avanza Bank Holding |
SaveLend Group and Avanza Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and Avanza Bank
The main advantage of trading using opposite SaveLend Group and Avanza Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group position performs unexpectedly, Avanza Bank 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 Avanza Bank will offset losses from the drop in Avanza Bank'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 |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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