Correlation Between Soder Sportfiske and Xintela AB
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Xintela 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 Soder Sportfiske and Xintela AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soder Sportfiske AB and Xintela AB, you can compare the effects of market volatilities on Soder Sportfiske and Xintela 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 Soder Sportfiske with a short position of Xintela AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Xintela AB.
Diversification Opportunities for Soder Sportfiske and Xintela AB
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Soder and Xintela is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Xintela AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintela AB and Soder Sportfiske 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 Soder Sportfiske AB are associated (or correlated) with Xintela AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintela AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Xintela AB go up and down completely randomly.
Pair Corralation between Soder Sportfiske and Xintela AB
Assuming the 90 days trading horizon Soder Sportfiske AB is expected to under-perform the Xintela AB. But the stock apears to be less risky and, when comparing its historical volatility, Soder Sportfiske AB is 1.72 times less risky than Xintela AB. The stock trades about -0.01 of its potential returns per unit of risk. The Xintela AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Xintela AB on September 26, 2024 and sell it today you would lose (1.00) from holding Xintela AB or give up 3.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Soder Sportfiske AB vs. Xintela AB
Performance |
Timeline |
Soder Sportfiske |
Xintela AB |
Soder Sportfiske and Xintela AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Soder Sportfiske and Xintela AB
The main advantage of trading using opposite Soder Sportfiske and Xintela AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, Xintela 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 Xintela AB will offset losses from the drop in Xintela AB's long position.Soder Sportfiske vs. Byggmax Group AB | Soder Sportfiske vs. Svedbergs i Dalstorp | Soder Sportfiske vs. Inwido AB | Soder Sportfiske vs. New Wave Group |
Xintela AB vs. BioInvent International AB | Xintela AB vs. Alligator Bioscience AB | Xintela AB vs. Moberg Pharma AB | Xintela AB vs. Oncopeptides 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |