Correlation Between Swedencare Publ and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Swedencare Publ and Bonesupport Holding 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 Swedencare Publ and Bonesupport Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedencare publ AB and Bonesupport Holding AB, you can compare the effects of market volatilities on Swedencare Publ and Bonesupport Holding 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 Swedencare Publ with a short position of Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedencare Publ and Bonesupport Holding.
Diversification Opportunities for Swedencare Publ and Bonesupport Holding
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swedencare and Bonesupport is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Swedencare publ AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding and Swedencare Publ 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 Swedencare publ AB are associated (or correlated) with Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Swedencare Publ i.e., Swedencare Publ and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Swedencare Publ and Bonesupport Holding
Assuming the 90 days trading horizon Swedencare Publ is expected to generate 1.27 times less return on investment than Bonesupport Holding. But when comparing it to its historical volatility, Swedencare publ AB is 1.31 times less risky than Bonesupport Holding. It trades about 0.08 of its potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 31,420 in Bonesupport Holding AB on September 14, 2024 and sell it today you would earn a total of 3,940 from holding Bonesupport Holding AB or generate 12.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Swedencare publ AB vs. Bonesupport Holding AB
Performance |
Timeline |
Swedencare publ AB |
Bonesupport Holding |
Swedencare Publ and Bonesupport Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swedencare Publ and Bonesupport Holding
The main advantage of trading using opposite Swedencare Publ and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedencare Publ position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding's long position.Swedencare Publ vs. Vitec Software Group | Swedencare Publ vs. SaltX Technology Holding | Swedencare Publ vs. 24SevenOffice Scandinavia AB | Swedencare Publ vs. Upsales Technology AB |
Bonesupport Holding vs. Mendus AB | Bonesupport Holding vs. Cantargia AB | Bonesupport Holding vs. BioInvent International AB | Bonesupport Holding vs. Isofol Medical 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Transaction History View history of all your transactions and understand their impact on performance |