Correlation Between Kinnevik Investment and SaveLend Group
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and SaveLend 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 Kinnevik Investment and SaveLend Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and SaveLend Group AB, you can compare the effects of market volatilities on Kinnevik Investment and SaveLend 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 Kinnevik Investment with a short position of SaveLend Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and SaveLend Group.
Diversification Opportunities for Kinnevik Investment and SaveLend Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kinnevik and SaveLend is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and SaveLend Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaveLend Group AB and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with SaveLend Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaveLend Group AB has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and SaveLend Group go up and down completely randomly.
Pair Corralation between Kinnevik Investment and SaveLend Group
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 0.8 times more return on investment than SaveLend Group. However, Kinnevik Investment AB is 1.25 times less risky than SaveLend Group. It trades about 0.05 of its potential returns per unit of risk. SaveLend Group AB is currently generating about -0.02 per unit of risk. If you would invest 7,580 in Kinnevik Investment AB on September 13, 2024 and sell it today you would earn a total of 442.00 from holding Kinnevik Investment AB or generate 5.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kinnevik Investment AB vs. SaveLend Group AB
Performance |
Timeline |
Kinnevik Investment |
SaveLend Group AB |
Kinnevik Investment and SaveLend Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinnevik Investment and SaveLend Group
The main advantage of trading using opposite Kinnevik Investment and SaveLend Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, SaveLend 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 SaveLend Group will offset losses from the drop in SaveLend Group's long position.Kinnevik Investment vs. Catella AB | Kinnevik Investment vs. Catella AB A | Kinnevik Investment vs. KABE Group AB | Kinnevik Investment vs. IAR Systems Group |
SaveLend Group vs. CDON AB | SaveLend Group vs. G5 Entertainment publ | SaveLend Group vs. Avanza Bank Holding | SaveLend Group vs. Pricer 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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