Correlation Between Avanza Bank and Magle Chemoswed
Can any of the company-specific risk be diversified away by investing in both Avanza Bank and Magle Chemoswed 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 Avanza Bank and Magle Chemoswed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avanza Bank Holding and Magle Chemoswed Holding, you can compare the effects of market volatilities on Avanza Bank and Magle Chemoswed 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 Avanza Bank with a short position of Magle Chemoswed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and Magle Chemoswed.
Diversification Opportunities for Avanza Bank and Magle Chemoswed
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avanza and Magle is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avanza Bank Holding and Magle Chemoswed Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magle Chemoswed Holding and Avanza Bank 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 Avanza Bank Holding are associated (or correlated) with Magle Chemoswed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magle Chemoswed Holding has no effect on the direction of Avanza Bank i.e., Avanza Bank and Magle Chemoswed go up and down completely randomly.
Pair Corralation between Avanza Bank and Magle Chemoswed
Assuming the 90 days trading horizon Avanza Bank Holding is expected to generate 0.48 times more return on investment than Magle Chemoswed. However, Avanza Bank Holding is 2.1 times less risky than Magle Chemoswed. It trades about 0.01 of its potential returns per unit of risk. Magle Chemoswed Holding is currently generating about -0.09 per unit of risk. If you would invest 34,330 in Avanza Bank Holding on September 7, 2025 and sell it today you would earn a total of 130.00 from holding Avanza Bank Holding or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanza Bank Holding vs. Magle Chemoswed Holding
Performance |
| Timeline |
| Avanza Bank Holding |
| Magle Chemoswed Holding |
Avanza Bank and Magle Chemoswed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanza Bank and Magle Chemoswed
The main advantage of trading using opposite Avanza Bank and Magle Chemoswed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanza Bank position performs unexpectedly, Magle Chemoswed 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 Magle Chemoswed will offset losses from the drop in Magle Chemoswed's long position.| Avanza Bank vs. Lundin Mining | Avanza Bank vs. Investment AB Oresund | Avanza Bank vs. S2Medical AB | Avanza Bank vs. 24SevenOffice Scandinavia AB |
| Magle Chemoswed vs. Havsfrun Investment AB | Magle Chemoswed vs. Indutrade AB | Magle Chemoswed vs. SaveLend Group AB | Magle Chemoswed vs. JLT Mobile Computers |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |