Correlation Between Swedbank and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Swedbank and Checkin Group 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 Swedbank and Checkin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Checkin Group AB, you can compare the effects of market volatilities on Swedbank and Checkin Group 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 Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Checkin Group.
Diversification Opportunities for Swedbank and Checkin Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedbank and Checkin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group 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 Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Swedbank i.e., Swedbank and Checkin Group go up and down completely randomly.
Pair Corralation between Swedbank and Checkin Group
Assuming the 90 days trading horizon Swedbank AB is expected to generate 0.41 times more return on investment than Checkin Group. However, Swedbank AB is 2.43 times less risky than Checkin Group. It trades about 0.05 of its potential returns per unit of risk. Checkin Group AB is currently generating about -0.04 per unit of risk. If you would invest 16,192 in Swedbank AB on September 26, 2024 and sell it today you would earn a total of 5,378 from holding Swedbank AB or generate 33.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Swedbank AB vs. Checkin Group AB
Performance |
Timeline |
Swedbank AB |
Checkin Group AB |
Swedbank and Checkin Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swedbank and Checkin Group
The main advantage of trading using opposite Swedbank and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, Checkin Group 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 Checkin Group will offset losses from the drop in Checkin Group's long position.Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 AB | Swedbank vs. H M Hennes |
Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |