Correlation Between Svenska Handelsbanken and USWE Sports
Can any of the company-specific risk be diversified away by investing in both Svenska Handelsbanken and USWE Sports 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 Svenska Handelsbanken and USWE Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Handelsbanken AB and USWE Sports AB, you can compare the effects of market volatilities on Svenska Handelsbanken and USWE Sports 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 Svenska Handelsbanken with a short position of USWE Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and USWE Sports.
Diversification Opportunities for Svenska Handelsbanken and USWE Sports
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and USWE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken AB and USWE Sports AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE Sports AB and Svenska Handelsbanken 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 Svenska Handelsbanken AB are associated (or correlated) with USWE Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE Sports AB has no effect on the direction of Svenska Handelsbanken i.e., Svenska Handelsbanken and USWE Sports go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and USWE Sports
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.44 times more return on investment than USWE Sports. However, Svenska Handelsbanken AB is 2.28 times less risky than USWE Sports. It trades about 0.2 of its potential returns per unit of risk. USWE Sports AB is currently generating about -0.05 per unit of risk. If you would invest 19,590 in Svenska Handelsbanken AB on September 5, 2025 and sell it today you would earn a total of 3,410 from holding Svenska Handelsbanken AB or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. USWE Sports AB
Performance |
| Timeline |
| Svenska Handelsbanken |
| USWE Sports AB |
Svenska Handelsbanken and USWE Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and USWE Sports
The main advantage of trading using opposite Svenska Handelsbanken and USWE Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken position performs unexpectedly, USWE Sports 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 USWE Sports will offset losses from the drop in USWE Sports' long position.| Svenska Handelsbanken vs. TradeDoubler AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. White Pearl Technology | Svenska Handelsbanken vs. High Coast Distillery |
| USWE Sports vs. Upsales Technology AB | USWE Sports vs. Asker Healthcare | USWE Sports vs. Media and Games | USWE Sports vs. Addtech 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |