Correlation Between SSAB AB and Cykel AI

Can any of the company-specific risk be diversified away by investing in both SSAB AB and Cykel AI 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 SSAB AB and Cykel AI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SSAB AB ser and Cykel AI PLC, you can compare the effects of market volatilities on SSAB AB and Cykel AI 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 SSAB AB with a short position of Cykel AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and Cykel AI.

Diversification Opportunities for SSAB AB and Cykel AI

-0.39

Correlation Coefficient

SSAB AB  Cykel AI

Very good diversification

The 3 months correlation between SSAB and Cykel is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and Cykel AI PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cykel AI PLC and SSAB AB 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 SSAB AB ser are associated (or correlated) with Cykel AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cykel AI PLC has no effect on the direction of SSAB AB i.e., SSAB AB and Cykel AI go up and down completely randomly.

Pair Corralation between SSAB AB and Cykel AI

Assuming the 90 days trading horizon SSAB AB ser is expected to generate 0.26 times more return on investment than Cykel AI. However, SSAB AB ser is 3.85 times less risky than Cykel AI. It trades about 0.09 of its potential returns per unit of risk. Cykel AI PLC is currently generating about -0.02 per unit of risk. If you would invest  5,689  in SSAB AB ser on April 23, 2025 and sell it today you would earn a total of  659.00  from holding SSAB AB ser or generate 11.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SSAB AB ser  vs.  Cykel AI PLC

SSAB AB ser

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SSAB AB ser are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SSAB AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cykel AI PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cykel AI PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with SSAB AB and Cykel AI

The main advantage of trading using opposite SSAB AB and Cykel AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, Cykel AI 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 Cykel AI will offset losses from the drop in Cykel AI's long position.

The idea behind SSAB AB ser and Cykel AI PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.