Correlation Between Clean Motion and SBB-B
Can any of the company-specific risk be diversified away by investing in both Clean Motion and SBB-B 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 Clean Motion and SBB-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Motion AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Clean Motion and SBB-B 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 Clean Motion with a short position of SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Motion and SBB-B.
Diversification Opportunities for Clean Motion and SBB-B
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clean and SBB-B is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Clean Motion AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget and Clean Motion 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 Clean Motion AB are associated (or correlated) with SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Clean Motion i.e., Clean Motion and SBB-B go up and down completely randomly.
Pair Corralation between Clean Motion and SBB-B
Assuming the 90 days trading horizon Clean Motion AB is expected to under-perform the SBB-B. In addition to that, Clean Motion is 1.18 times more volatile than Samhllsbyggnadsbolaget i Norden. It trades about -0.33 of its total potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about 0.19 per unit of volatility. If you would invest 628.00 in Samhllsbyggnadsbolaget i Norden on June 29, 2024 and sell it today you would earn a total of 116.00 from holding Samhllsbyggnadsbolaget i Norden or generate 18.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Clean Motion AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
Timeline |
Clean Motion AB |
Samhllsbyggnadsbolaget |
Clean Motion and SBB-B Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clean Motion and SBB-B
The main advantage of trading using opposite Clean Motion and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Motion position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.Clean Motion vs. Volvo Car AB | Clean Motion vs. Nilsson Special Vehicles | Clean Motion vs. KABE Group AB | Clean Motion vs. IAR Systems Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |