Correlation Between Sabien Technology and Systemair

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

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

Diversification Opportunities for Sabien Technology and Systemair

0.07

Correlation Coefficient

Sabien Technology  Systemair

Significant diversification

The 3 months correlation between Sabien and Systemair is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Sabien Technology i.e., Sabien Technology and Systemair go up and down completely randomly.

Pair Corralation between Sabien Technology and Systemair

Assuming the 90 days trading horizon Sabien Technology is expected to generate 8.56 times less return on investment than Systemair. In addition to that, Sabien Technology is 1.5 times more volatile than Systemair AB. It trades about 0.01 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.18 per unit of volatility. If you would invest  7,850  in Systemair AB on April 25, 2025 and sell it today you would earn a total of  1,740  from holding Systemair AB or generate 22.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Sabien Technology Group  vs.  Systemair AB

Sabien Technology

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sabien Technology Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Sabien Technology is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Systemair AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Systemair AB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Systemair unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sabien Technology and Systemair

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

The idea behind Sabien Technology Group and Systemair 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.