Correlation Between Soder Sportfiske and HomeMaid
Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and HomeMaid 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 Soder Sportfiske and HomeMaid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soder Sportfiske AB and HomeMaid AB, you can compare the effects of market volatilities on Soder Sportfiske and HomeMaid 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 Soder Sportfiske with a short position of HomeMaid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and HomeMaid.
Diversification Opportunities for Soder Sportfiske and HomeMaid
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Soder and HomeMaid is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and HomeMaid AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeMaid AB and Soder Sportfiske 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 Soder Sportfiske AB are associated (or correlated) with HomeMaid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeMaid AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and HomeMaid go up and down completely randomly.
Pair Corralation between Soder Sportfiske and HomeMaid
Assuming the 90 days trading horizon Soder Sportfiske AB is expected to under-perform the HomeMaid. In addition to that, Soder Sportfiske is 1.43 times more volatile than HomeMaid AB. It trades about -0.16 of its total potential returns per unit of risk. HomeMaid AB is currently generating about 0.0 per unit of volatility. If you would invest 3,700 in HomeMaid AB on September 7, 2025 and sell it today you would lose (60.00) from holding HomeMaid AB or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soder Sportfiske AB vs. HomeMaid AB
Performance |
| Timeline |
| Soder Sportfiske |
| HomeMaid AB |
Soder Sportfiske and HomeMaid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soder Sportfiske and HomeMaid
The main advantage of trading using opposite Soder Sportfiske and HomeMaid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soder Sportfiske position performs unexpectedly, HomeMaid 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 HomeMaid will offset losses from the drop in HomeMaid's long position.| Soder Sportfiske vs. Thule Group AB | Soder Sportfiske vs. Fenix Outdoor International | Soder Sportfiske vs. MIPS AB | Soder Sportfiske vs. SkiStar AB |
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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.
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