Correlation Between Sinch AB and Wallenstam
Can any of the company-specific risk be diversified away by investing in both Sinch AB and Wallenstam 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 Sinch AB and Wallenstam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Wallenstam AB, you can compare the effects of market volatilities on Sinch AB and Wallenstam 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 Sinch AB with a short position of Wallenstam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Wallenstam.
Diversification Opportunities for Sinch AB and Wallenstam
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinch and Wallenstam is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sinch AB and Wallenstam AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallenstam AB and Sinch AB 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 Sinch AB are associated (or correlated) with Wallenstam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallenstam AB has no effect on the direction of Sinch AB i.e., Sinch AB and Wallenstam go up and down completely randomly.
Pair Corralation between Sinch AB and Wallenstam
Assuming the 90 days trading horizon Sinch AB is expected to under-perform the Wallenstam. In addition to that, Sinch AB is 2.68 times more volatile than Wallenstam AB. It trades about -0.11 of its total potential returns per unit of risk. Wallenstam AB is currently generating about -0.1 per unit of volatility. If you would invest 5,499 in Wallenstam AB on September 12, 2024 and sell it today you would lose (575.00) from holding Wallenstam AB or give up 10.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sinch AB vs. Wallenstam AB
Performance |
Timeline |
Sinch AB |
Wallenstam AB |
Sinch AB and Wallenstam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinch AB and Wallenstam
The main advantage of trading using opposite Sinch AB and Wallenstam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB position performs unexpectedly, Wallenstam 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 Wallenstam will offset losses from the drop in Wallenstam's long position.Sinch AB vs. Embracer Group AB | Sinch AB vs. Samhllsbyggnadsbolaget i Norden | Sinch AB vs. Evolution AB | Sinch AB vs. Stillfront Group AB |
Wallenstam vs. Sinch AB | Wallenstam vs. Embracer Group AB | Wallenstam vs. Investor AB ser | Wallenstam vs. Castellum 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |