Correlation Between Ioneer and Securitas

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Can any of the company-specific risk be diversified away by investing in both Ioneer and Securitas 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 Ioneer and Securitas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ioneer Ltd American and Securitas AB, you can compare the effects of market volatilities on Ioneer and Securitas 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 Ioneer with a short position of Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ioneer and Securitas.

Diversification Opportunities for Ioneer and Securitas

IoneerSecuritasDiversified AwayIoneerSecuritasDiversified Away100%
-0.81
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Ioneer and Securitas is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ioneer Ltd American and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB and Ioneer 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 ioneer Ltd American are associated (or correlated) with Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Ioneer i.e., Ioneer and Securitas go up and down completely randomly.

Pair Corralation between Ioneer and Securitas

If you would invest  1,285  in Securitas AB on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Securitas AB or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy26.67%
ValuesDaily Returns

ioneer Ltd American  vs.  Securitas AB

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -40-30-20-100102030
JavaScript chart by amCharts 3.21.15IONR SCTBF
       Timeline  
ioneer American 

Risk-Adjusted Performance

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Over the last 90 days ioneer Ltd American has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan456789
Securitas AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Securitas AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Securitas is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Ioneer and Securitas Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.13-6.84-4.55-2.250.02.124.326.518.7110.91 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15IONR SCTBF
       Returns  

Pair Trading with Ioneer and Securitas

The main advantage of trading using opposite Ioneer and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ioneer position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.
The idea behind ioneer Ltd American and Securitas 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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