Correlation Between Fram Skandinavien and CoinShares International

Can any of the company-specific risk be diversified away by investing in both Fram Skandinavien and CoinShares International 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 Fram Skandinavien and CoinShares International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fram Skandinavien AB and CoinShares International, you can compare the effects of market volatilities on Fram Skandinavien and CoinShares International 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 Fram Skandinavien with a short position of CoinShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fram Skandinavien and CoinShares International.

Diversification Opportunities for Fram Skandinavien and CoinShares International

-0.72

Correlation Coefficient

Fram Skandinavien  CoinShares International

Pay attention - limited upside

The 3 months correlation between Fram and CoinShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fram Skandinavien AB and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International and Fram Skandinavien 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 Fram Skandinavien AB are associated (or correlated) with CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of Fram Skandinavien i.e., Fram Skandinavien and CoinShares International go up and down completely randomly.

Pair Corralation between Fram Skandinavien and CoinShares International

Assuming the 90 days trading horizon Fram Skandinavien AB is expected to under-perform the CoinShares International. In addition to that, Fram Skandinavien is 1.34 times more volatile than CoinShares International. It trades about -0.18 of its total potential returns per unit of risk. CoinShares International is currently generating about 0.32 per unit of volatility. If you would invest  6,970  in CoinShares International on April 22, 2025 and sell it today you would earn a total of  4,790  from holding CoinShares International or generate 68.72% return on investment over 90 days.

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

Fram Skandinavien AB  vs.  CoinShares International

Fram Skandinavien

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fram Skandinavien AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CoinShares International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CoinShares International are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CoinShares International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fram Skandinavien and CoinShares International

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

The idea behind Fram Skandinavien AB and CoinShares International 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.