Correlation Between SVENSKA AEROGEL and SVENSKA CELLULO

Can any of the company-specific risk be diversified away by investing in both SVENSKA AEROGEL and SVENSKA CELLULO 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 SVENSKA AEROGEL and SVENSKA CELLULO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SVENSKA AEROGEL HOLDING and SVENSKA CELLULO B , you can compare the effects of market volatilities on SVENSKA AEROGEL and SVENSKA CELLULO 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 SVENSKA AEROGEL with a short position of SVENSKA CELLULO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVENSKA AEROGEL and SVENSKA CELLULO.

Diversification Opportunities for SVENSKA AEROGEL and SVENSKA CELLULO

0.0

Correlation Coefficient

SVENSKA AEROGEL  SVENSKA CELLULO

Pay attention - limited upside

The 3 months correlation between SVENSKA and SVENSKA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVENSKA AEROGEL HOLDING and SVENSKA CELLULO B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVENSKA CELLULO B and SVENSKA AEROGEL 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 SVENSKA AEROGEL HOLDING are associated (or correlated) with SVENSKA CELLULO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVENSKA CELLULO B has no effect on the direction of SVENSKA AEROGEL i.e., SVENSKA AEROGEL and SVENSKA CELLULO go up and down completely randomly.

Pair Corralation between SVENSKA AEROGEL and SVENSKA CELLULO

If you would invest  44.00  in SVENSKA AEROGEL HOLDING on October 4, 2024 and sell it today you would earn a total of  6.00  from holding SVENSKA AEROGEL HOLDING or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SVENSKA AEROGEL HOLDING  vs.  SVENSKA CELLULO B

SVENSKA AEROGEL HOLDING

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in SVENSKA AEROGEL HOLDING are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SVENSKA AEROGEL reported solid returns over the last few months and may actually be approaching a breakup point.

SVENSKA CELLULO B

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SVENSKA CELLULO B has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SVENSKA CELLULO is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SVENSKA AEROGEL and SVENSKA CELLULO

The main advantage of trading using opposite SVENSKA AEROGEL and SVENSKA CELLULO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVENSKA AEROGEL position performs unexpectedly, SVENSKA CELLULO 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 SVENSKA CELLULO will offset losses from the drop in SVENSKA CELLULO's long position.

The idea behind SVENSKA AEROGEL HOLDING and SVENSKA CELLULO B pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.