Correlation Between Investment and Saniona AB

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

By analyzing existing cross correlation between Investment AB Oresund and Saniona AB TO, you can compare the effects of market volatilities on Investment and Saniona AB 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 Investment with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Saniona AB.

Diversification Opportunities for Investment and Saniona AB

0.0

Correlation Coefficient

Investment  Saniona AB

Pay attention - limited upside

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

Pair Corralation between Investment and Saniona AB

If you would invest  0.00  in Saniona AB TO on October 21, 2024 and sell it today you would earn a total of  0.00  from holding Saniona AB TO or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.63%
Values	Daily Returns

Investment AB Oresund  vs.  Saniona AB TO

Investment AB Oresund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Investment AB Oresund has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Saniona AB TO

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Saniona AB TO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Saniona AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Investment and Saniona AB

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

The idea behind Investment AB Oresund and Saniona AB TO 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.