Correlation Between Swedencare Publ and Triboron International

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

By analyzing existing cross correlation between Swedencare publ AB and Triboron International AB, you can compare the effects of market volatilities on Swedencare Publ 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 Swedencare Publ with a short position of Triboron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Triboron International.

Diversification Opportunities for Swedencare Publ and Triboron International

-0.51

Correlation Coefficient

Swedencare Publ  Triboron International

Excellent diversification

The 3 months correlation between Swedencare and Triboron is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ AB and Triboron International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triboron International and Swedencare Publ 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 Swedencare publ AB 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 Swedencare Publ i.e., Swedencare Publ and Triboron International go up and down completely randomly.

Pair Corralation between Swedencare Publ and Triboron International

Assuming the 90 days trading horizon Swedencare publ AB is expected to generate 0.53 times more return on investment than Triboron International. However, Swedencare publ AB is 1.9 times less risky than Triboron International. It trades about 0.15 of its potential returns per unit of risk. Triboron International AB is currently generating about -0.2 per unit of risk. If you would invest  4,530  in Swedencare publ AB on September 22, 2024 and sell it today you would earn a total of  292.00  from holding Swedencare publ AB or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Swedencare publ AB  vs.  Triboron International AB

Swedencare publ AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Swedencare publ AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Swedencare Publ may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Triboron International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Swedencare Publ and Triboron International

The main advantage of trading using opposite Swedencare Publ and Triboron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ 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 Swedencare publ AB 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.