Correlation Between Generic Sweden and EEducation Albert

Can any of the company-specific risk be diversified away by investing in both Generic Sweden and EEducation Albert 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 Generic Sweden and EEducation Albert into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Generic Sweden publ and eEducation Albert AB, you can compare the effects of market volatilities on Generic Sweden and EEducation Albert 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 Generic Sweden with a short position of EEducation Albert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generic Sweden and EEducation Albert.

Diversification Opportunities for Generic Sweden and EEducation Albert

0.32

Correlation Coefficient

Generic Sweden  EEducation Albert

Weak diversification

The 3 months correlation between Generic and EEducation is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Generic Sweden publ and eEducation Albert AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eEducation Albert and Generic Sweden 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 Generic Sweden publ are associated (or correlated) with EEducation Albert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eEducation Albert has no effect on the direction of Generic Sweden i.e., Generic Sweden and EEducation Albert go up and down completely randomly.

Pair Corralation between Generic Sweden and EEducation Albert

Assuming the 90 days trading horizon Generic Sweden is expected to generate 37.05 times less return on investment than EEducation Albert. But when comparing it to its historical volatility, Generic Sweden publ is 2.67 times less risky than EEducation Albert. It trades about 0.0 of its potential returns per unit of risk. eEducation Albert AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  309.00  in eEducation Albert AB on April 24, 2025 and sell it today you would earn a total of  6.00  from holding eEducation Albert AB or generate 1.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Generic Sweden publ  vs.  eEducation Albert AB

Generic Sweden publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generic Sweden publ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Generic Sweden is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

eEducation Albert

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in eEducation Albert AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, EEducation Albert may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Generic Sweden and EEducation Albert

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

The idea behind Generic Sweden publ and eEducation Albert AB 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.