Correlation Between S2Medical and Online Brands
Can any of the company-specific risk be diversified away by investing in both S2Medical and Online Brands 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 S2Medical and Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S2Medical AB and Online Brands Nordic, you can compare the effects of market volatilities on S2Medical and Online Brands 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 S2Medical with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of S2Medical and Online Brands.
Diversification Opportunities for S2Medical and Online Brands
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between S2Medical and Online is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding S2Medical AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic and S2Medical 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 S2Medical AB are associated (or correlated) with Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of S2Medical i.e., S2Medical and Online Brands go up and down completely randomly.
Pair Corralation between S2Medical and Online Brands
Assuming the 90 days trading horizon S2Medical AB is expected to under-perform the Online Brands. But the stock apears to be less risky and, when comparing its historical volatility, S2Medical AB is 1.14 times less risky than Online Brands. The stock trades about -0.06 of its potential returns per unit of risk. The Online Brands Nordic is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,220 in Online Brands Nordic on September 6, 2025 and sell it today you would earn a total of 285.00 from holding Online Brands Nordic or generate 23.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
S2Medical AB vs. Online Brands Nordic
Performance |
| Timeline |
| S2Medical AB |
| Online Brands Nordic |
S2Medical and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S2Medical and Online Brands
The main advantage of trading using opposite S2Medical and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S2Medical position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| S2Medical vs. New Nordic Healthbrands | S2Medical vs. Asker Healthcare | S2Medical vs. Media and Games | S2Medical vs. Lundin Mining |
| Online Brands vs. USWE Sports AB | Online Brands vs. Flowscape Technology AB | Online Brands vs. High Coast Distillery | Online Brands vs. Axfood 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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