Correlation Between Svenska Aerogel and Triboron International

Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and Triboron International 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 Triboron International 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 Triboron International AB, you can compare the effects of market volatilities on Svenska Aerogel and Triboron International 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 Triboron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and Triboron International.

Diversification Opportunities for Svenska Aerogel and Triboron International

-0.14

Correlation Coefficient

Svenska Aerogel  Triboron International

Good diversification

The 3 months correlation between Svenska and Triboron is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and Triboron International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triboron International 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 Triboron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triboron International has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and Triboron International go up and down completely randomly.

Pair Corralation between Svenska Aerogel and Triboron International

Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the Triboron International. In addition to that, Svenska Aerogel is 1.11 times more volatile than Triboron International AB. It trades about -0.02 of its total potential returns per unit of risk. Triboron International AB is currently generating about 0.01 per unit of volatility. If you would invest  55.00  in Triboron International AB on September 12, 2024 and sell it today you would lose (16.00) from holding Triboron International AB or give up 29.09% of portfolio value over 90 days.

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

Svenska Aerogel Holding  vs.  Triboron International AB

Svenska Aerogel Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Svenska Aerogel Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Triboron International

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triboron International AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Triboron International may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Svenska Aerogel and Triboron International

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

The idea behind Svenska Aerogel Holding and Triboron International AB 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.