Correlation Between ANDRADA MINING and Skandinaviska Enskilda

Can any of the company-specific risk be diversified away by investing in both ANDRADA MINING and Skandinaviska Enskilda 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 ANDRADA MINING and Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANDRADA MINING LTD and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on ANDRADA MINING and Skandinaviska Enskilda 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 ANDRADA MINING with a short position of Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANDRADA MINING and Skandinaviska Enskilda.

Diversification Opportunities for ANDRADA MINING and Skandinaviska Enskilda

0.05

Correlation Coefficient

ANDRADA MINING  Skandinaviska Enskilda

Significant diversification

The 3 months correlation between ANDRADA and Skandinaviska is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ANDRADA MINING LTD and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda and ANDRADA MINING 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 ANDRADA MINING LTD are associated (or correlated) with Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of ANDRADA MINING i.e., ANDRADA MINING and Skandinaviska Enskilda go up and down completely randomly.

Pair Corralation between ANDRADA MINING and Skandinaviska Enskilda

Assuming the 90 days horizon ANDRADA MINING is expected to generate 2.01 times less return on investment than Skandinaviska Enskilda. In addition to that, ANDRADA MINING is 3.13 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.03 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.16 per unit of volatility. If you would invest  1,325  in Skandinaviska Enskilda Banken on April 20, 2025 and sell it today you would earn a total of  153.00  from holding Skandinaviska Enskilda Banken or generate 11.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ANDRADA MINING LTD  vs.  Skandinaviska Enskilda Banken

ANDRADA MINING LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANDRADA MINING LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ANDRADA MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Skandinaviska Enskilda

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Skandinaviska Enskilda Banken are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, Skandinaviska Enskilda may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ANDRADA MINING and Skandinaviska Enskilda

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

The idea behind ANDRADA MINING LTD and Skandinaviska Enskilda Banken 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..