Correlation Between Synsam AB and Q Linea
Can any of the company-specific risk be diversified away by investing in both Synsam AB and Q Linea 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 Synsam AB and Q Linea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synsam AB and Q linea AB, you can compare the effects of market volatilities on Synsam AB and Q Linea 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 Synsam AB with a short position of Q Linea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synsam AB and Q Linea.
Diversification Opportunities for Synsam AB and Q Linea
Almost no diversification
The 3 months correlation between Synsam and QLINEA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Synsam AB and Q linea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q linea AB and Synsam 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 Synsam AB are associated (or correlated) with Q Linea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q linea AB has no effect on the direction of Synsam AB i.e., Synsam AB and Q Linea go up and down completely randomly.
Pair Corralation between Synsam AB and Q Linea
Assuming the 90 days trading horizon Synsam AB is expected to generate 0.38 times more return on investment than Q Linea. However, Synsam AB is 2.64 times less risky than Q Linea. It trades about -0.12 of its potential returns per unit of risk. Q linea AB is currently generating about -0.37 per unit of risk. If you would invest 4,905 in Synsam AB on September 23, 2024 and sell it today you would lose (605.00) from holding Synsam AB or give up 12.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Synsam AB vs. Q linea AB
Performance |
Timeline |
Synsam AB |
Q linea AB |
Synsam AB and Q Linea Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Synsam AB and Q Linea
The main advantage of trading using opposite Synsam AB and Q Linea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synsam AB position performs unexpectedly, Q Linea 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 Q Linea will offset losses from the drop in Q Linea's long position.Synsam AB vs. Nordnet AB | Synsam AB vs. Storskogen Group AB | Synsam AB vs. Truecaller AB | Synsam AB vs. Peab AB |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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