Correlation Between Swedbank and Bonava AB
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By analyzing existing cross correlation between Swedbank AB and Bonava AB, you can compare the effects of market volatilities on Swedbank and Bonava 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 Swedbank with a short position of Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Bonava AB.
Diversification Opportunities for Swedbank and Bonava AB
Very good diversification
The 3 months correlation between Swedbank and Bonava is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB and Swedbank 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 Swedbank AB are associated (or correlated) with Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Swedbank i.e., Swedbank and Bonava AB go up and down completely randomly.
Pair Corralation between Swedbank and Bonava AB
Assuming the 90 days trading horizon Swedbank AB is expected to under-perform the Bonava AB. But the stock apears to be less risky and, when comparing its historical volatility, Swedbank AB is 2.74 times less risky than Bonava AB. The stock trades about -0.07 of its potential returns per unit of risk. The Bonava AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 831.00 in Bonava AB on September 6, 2024 and sell it today you would lose (20.00) from holding Bonava AB or give up 2.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Swedbank AB vs. Bonava AB
Performance |
Timeline |
Swedbank AB |
Bonava AB |
Swedbank and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swedbank and Bonava AB
The main advantage of trading using opposite Swedbank and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, Bonava 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 Bonava AB will offset losses from the drop in Bonava AB's long position.Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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