Correlation Between SOEDER SPORTFISKE and Bank of Nova Scotia

Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and Bank of Nova Scotia 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 SOEDER SPORTFISKE and Bank of Nova Scotia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SOEDER SPORTFISKE AB and The Bank of, you can compare the effects of market volatilities on SOEDER SPORTFISKE and Bank of Nova Scotia 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 SOEDER SPORTFISKE with a short position of Bank of Nova Scotia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and Bank of Nova Scotia.

Diversification Opportunities for SOEDER SPORTFISKE and Bank of Nova Scotia

-0.31

Correlation Coefficient

SOEDER SPORTFISKE  Bank of Nova Scotia

Very good diversification

The 3 months correlation between SOEDER and Bank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nova Scotia and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB are associated (or correlated) with Bank of Nova Scotia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Nova Scotia has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and Bank of Nova Scotia go up and down completely randomly.

Pair Corralation between SOEDER SPORTFISKE and Bank of Nova Scotia

Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 2.8 times more return on investment than Bank of Nova Scotia. However, SOEDER SPORTFISKE is 2.8 times more volatile than The Bank of. It trades about 0.12 of its potential returns per unit of risk. The Bank of is currently generating about -0.18 per unit of risk. If you would invest  210.00  in SOEDER SPORTFISKE AB on December 20, 2024 and sell it today you would earn a total of  49.00  from holding SOEDER SPORTFISKE AB or generate 23.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SOEDER SPORTFISKE AB  vs.  The Bank of

SOEDER SPORTFISKE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SOEDER SPORTFISKE AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SOEDER SPORTFISKE reported solid returns over the last few months and may actually be approaching a breakup point.

Bank of Nova Scotia

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Bank of has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SOEDER SPORTFISKE and Bank of Nova Scotia

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

The idea behind SOEDER SPORTFISKE AB and The Bank of 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.