Correlation Between Footway Group and Svenska Handelsbanken
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By analyzing existing cross correlation between Footway Group AB and Svenska Handelsbanken AB, you can compare the effects of market volatilities on Footway Group and Svenska Handelsbanken 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 Footway Group with a short position of Svenska Handelsbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Svenska Handelsbanken.
Diversification Opportunities for Footway Group and Svenska Handelsbanken
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Footway and Svenska is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and Svenska Handelsbanken AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svenska Handelsbanken and Footway Group 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 Footway Group AB are associated (or correlated) with Svenska Handelsbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svenska Handelsbanken has no effect on the direction of Footway Group i.e., Footway Group and Svenska Handelsbanken go up and down completely randomly.
Pair Corralation between Footway Group and Svenska Handelsbanken
Assuming the 90 days trading horizon Footway Group AB is expected to under-perform the Svenska Handelsbanken. In addition to that, Footway Group is 2.48 times more volatile than Svenska Handelsbanken AB. It trades about -0.04 of its total potential returns per unit of risk. Svenska Handelsbanken AB is currently generating about 0.04 per unit of volatility. If you would invest 9,510 in Svenska Handelsbanken AB on February 7, 2024 and sell it today you would earn a total of 2,550 from holding Svenska Handelsbanken AB or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Footway Group AB vs. Svenska Handelsbanken AB
Performance |
| Timeline |
| Footway Group AB |
| Svenska Handelsbanken |
Footway Group and Svenska Handelsbanken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and Svenska Handelsbanken
The main advantage of trading using opposite Footway Group and Svenska Handelsbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, Svenska Handelsbanken 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 Svenska Handelsbanken will offset losses from the drop in Svenska Handelsbanken's long position.| Footway Group vs. USWE Sports AB | Footway Group vs. MTI Investment SE | Footway Group vs. G5 Entertainment publ | Footway Group vs. Havsfrun Investment AB |
| Svenska Handelsbanken vs. Svenska Handelsbanken AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Atlas Copco AB | Svenska Handelsbanken vs. Skandinaviska Enskilda Banken |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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