Correlation Between Swedbank and EQT AB
Can any of the company-specific risk be diversified away by investing in both Swedbank and EQT AB 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 Swedbank and EQT AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and EQT AB, you can compare the effects of market volatilities on Swedbank and EQT AB 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 Swedbank with a short position of EQT AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and EQT AB.
Diversification Opportunities for Swedbank and EQT AB
Very good diversification
The 3 months correlation between Swedbank and EQT is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and EQT AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQT AB and Swedbank 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 Swedbank AB are associated (or correlated) with EQT AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQT AB has no effect on the direction of Swedbank i.e., Swedbank and EQT AB go up and down completely randomly.
Pair Corralation between Swedbank and EQT AB
Assuming the 90 days trading horizon Swedbank AB is expected to generate 0.45 times more return on investment than EQT AB. However, Swedbank AB is 2.2 times less risky than EQT AB. It trades about 0.23 of its potential returns per unit of risk. EQT AB is currently generating about 0.0 per unit of risk. If you would invest 27,120 in Swedbank AB on September 11, 2025 and sell it today you would earn a total of 3,620 from holding Swedbank AB or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. EQT AB
Performance |
| Timeline |
| Swedbank AB |
| EQT AB |
Swedbank and EQT AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and EQT AB
The main advantage of trading using opposite Swedbank and EQT AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, EQT AB 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 EQT AB will offset losses from the drop in EQT AB's long position.| Swedbank vs. Skandinaviska Enskilda Banken | Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Sampo A SDB |
| EQT AB vs. Skandinaviska Enskilda Banken | EQT AB vs. Swedbank AB | EQT AB vs. Investment AB Latour | EQT AB vs. Industrivarden AB ser |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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