Correlation Between Cibus Nordic and SBB-D

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

By analyzing existing cross correlation between Cibus Nordic Real and Samhaellsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Cibus Nordic and SBB-D 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 Cibus Nordic with a short position of SBB-D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibus Nordic and SBB-D.

Diversification Opportunities for Cibus Nordic and SBB-D

0.88

Correlation Coefficient

Cibus Nordic  SBB-D

Very poor diversification

The 3 months correlation between Cibus and SBB-D is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cibus Nordic Real and Samhaellsbyggnadsbolaget i Nor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhaellsbyggnadsbol and Cibus Nordic 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 Cibus Nordic Real are associated (or correlated) with SBB-D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhaellsbyggnadsbol has no effect on the direction of Cibus Nordic i.e., Cibus Nordic and SBB-D go up and down completely randomly.

Pair Corralation between Cibus Nordic and SBB-D

Assuming the 90 days trading horizon Cibus Nordic Real is expected to under-perform the SBB-D. But the stock apears to be less risky and, when comparing its historical volatility, Cibus Nordic Real is 2.15 times less risky than SBB-D. The stock trades about -0.15 of its potential returns per unit of risk. The Samhaellsbyggnadsbolaget i Norden is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  660.00  in Samhaellsbyggnadsbolaget i Norden on December 30, 2024 and sell it today you would lose (99.00) from holding Samhaellsbyggnadsbolaget i Norden or give up 15.0% of portfolio value over 90 days.

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

Cibus Nordic Real  vs.  Samhaellsbyggnadsbolaget i Nor

Cibus Nordic Real

Risk-Adjusted Performance

Very Weak

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

Samhaellsbyggnadsbol

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Cibus Nordic and SBB-D

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

The idea behind Cibus Nordic Real and Samhaellsbyggnadsbolaget i Norden 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 Stocks Directory module to find actively traded stocks across global markets.