Correlation Between SBB-B and Cibus Nordic

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

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

Diversification Opportunities for SBB-B and Cibus Nordic

0.91

Correlation Coefficient

SBB-B  Cibus Nordic

Almost no diversification

The 3 months correlation between SBB-B and Cibus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Samhllsbyggnadsbolaget i Norde and Cibus Nordic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibus Nordic Real and SBB-B 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 Samhllsbyggnadsbolaget i Norden are associated (or correlated) with Cibus Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibus Nordic Real has no effect on the direction of SBB-B i.e., SBB-B and Cibus Nordic go up and down completely randomly.

Pair Corralation between SBB-B and Cibus Nordic

Assuming the 90 days trading horizon Samhllsbyggnadsbolaget i Norden is expected to under-perform the Cibus Nordic. In addition to that, SBB-B is 2.34 times more volatile than Cibus Nordic Real. It trades about -0.1 of its total potential returns per unit of risk. Cibus Nordic Real is currently generating about -0.15 per unit of volatility. If you would invest  17,442  in Cibus Nordic Real on December 30, 2024 and sell it today you would lose (2,512) from holding Cibus Nordic Real or give up 14.4% of portfolio value over 90 days.

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

Samhllsbyggnadsbolaget i Norde  vs.  Cibus Nordic Real

Samhllsbyggnadsbolaget

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samhllsbyggnadsbolaget 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.

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.

Pair Trading with SBB-B and Cibus Nordic

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

The idea behind Samhllsbyggnadsbolaget i Norden and Cibus Nordic Real 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.