Correlation Between Essity AB and Candles Scandinavia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Essity AB and Candles Scandinavia AB, you can compare the effects of market volatilities on Essity AB and Candles Scandinavia 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 Essity AB with a short position of Candles Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essity AB and Candles Scandinavia.
Diversification Opportunities for Essity AB and Candles Scandinavia
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Essity and Candles is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Essity AB and Candles Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candles Scandinavia and Essity 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 Essity AB are associated (or correlated) with Candles Scandinavia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Candles Scandinavia has no effect on the direction of Essity AB i.e., Essity AB and Candles Scandinavia go up and down completely randomly.
Pair Corralation between Essity AB and Candles Scandinavia
Assuming the 90 days trading horizon Essity AB is expected to under-perform the Candles Scandinavia. But the stock apears to be less risky and, when comparing its historical volatility, Essity AB is 2.59 times less risky than Candles Scandinavia. The stock trades about -0.05 of its potential returns per unit of risk. The Candles Scandinavia AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,970 in Candles Scandinavia AB on September 5, 2024 and sell it today you would earn a total of 360.00 from holding Candles Scandinavia AB or generate 18.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Essity AB vs. Candles Scandinavia AB
Performance |
Timeline |
Essity AB |
Candles Scandinavia |
Essity AB and Candles Scandinavia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Essity AB and Candles Scandinavia
The main advantage of trading using opposite Essity AB and Candles Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essity AB position performs unexpectedly, Candles Scandinavia 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 Candles Scandinavia will offset losses from the drop in Candles Scandinavia's long position.Essity AB vs. Mendus AB | Essity AB vs. JonDeTech Sensors | Essity AB vs. Nexam Chemical Holding | Essity AB vs. Lohilo Foods AB |
Candles Scandinavia vs. Mendus AB | Candles Scandinavia vs. JonDeTech Sensors | Candles Scandinavia vs. Nexam Chemical Holding | Candles Scandinavia vs. Lohilo Foods 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Commodity Directory Find actively traded commodities issued by global exchanges |