Correlation Between Svenska Handelsbanken and Alpcot Holding
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By analyzing existing cross correlation between Svenska Handelsbanken AB and Alpcot Holding AB, you can compare the effects of market volatilities on Svenska Handelsbanken and Alpcot Holding 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 Svenska Handelsbanken with a short position of Alpcot Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Alpcot Holding.
Diversification Opportunities for Svenska Handelsbanken and Alpcot Holding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Svenska and Alpcot is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and Alpcot Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpcot Holding AB and Svenska Handelsbanken 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 Svenska Handelsbanken AB are associated (or correlated) with Alpcot Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpcot Holding AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and Alpcot Holding go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Alpcot Holding
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.3 times more return on investment than Alpcot Holding. However, Svenska Handelsbanken AB is 3.39 times less risky than Alpcot Holding. It trades about 0.08 of its potential returns per unit of risk. Alpcot Holding AB is currently generating about -0.02 per unit of risk. If you would invest 9,994 in Svenska Handelsbanken AB on September 25, 2024 and sell it today you would earn a total of 1,341 from holding Svenska Handelsbanken AB or generate 13.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.22% |
Values | Daily Returns |
Svenska Handelsbanken AB vs. Alpcot Holding AB
Performance |
Timeline |
Svenska Handelsbanken |
Alpcot Holding AB |
Svenska Handelsbanken and Alpcot Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Svenska Handelsbanken and Alpcot Holding
The main advantage of trading using opposite Svenska Handelsbanken and Alpcot Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, Alpcot Holding 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 Alpcot Holding will offset losses from the drop in Alpcot Holding's long position.Svenska Handelsbanken vs. Swedbank AB | Svenska Handelsbanken vs. Tele2 AB | Svenska Handelsbanken vs. Telia Company AB | Svenska Handelsbanken vs. Investor AB ser |
Alpcot Holding vs. KebNi AB | Alpcot Holding vs. Checkin Group AB | Alpcot Holding vs. Freemelt Holding AB | Alpcot Holding vs. Unibap AB |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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