Correlation Between Soder Sportfiske and Unlimited Travel

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

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

Diversification Opportunities for Soder Sportfiske and Unlimited Travel

0.87

Correlation Coefficient

Soder Sportfiske  Unlimited Travel

Very poor diversification

The 3 months correlation between Soder and Unlimited is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Unlimited Travel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlimited Travel and Soder Sportfiske 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 Soder Sportfiske AB are associated (or correlated) with Unlimited Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlimited Travel has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Unlimited Travel go up and down completely randomly.

Pair Corralation between Soder Sportfiske and Unlimited Travel

Assuming the 90 days trading horizon Soder Sportfiske AB is expected to generate 2.16 times more return on investment than Unlimited Travel. However, Soder Sportfiske is 2.16 times more volatile than Unlimited Travel Group. It trades about 0.13 of its potential returns per unit of risk. Unlimited Travel Group is currently generating about 0.16 per unit of risk. If you would invest  2,520  in Soder Sportfiske AB on April 20, 2025 and sell it today you would earn a total of  580.00  from holding Soder Sportfiske AB or generate 23.02% return on investment over 90 days.

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

Soder Sportfiske AB  vs.  Unlimited Travel Group

Soder Sportfiske

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Soder Sportfiske AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Soder Sportfiske unveiled solid returns over the last few months and may actually be approaching a breakup point.

Unlimited Travel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unlimited Travel Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Unlimited Travel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Soder Sportfiske and Unlimited Travel

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

The idea behind Soder Sportfiske AB and Unlimited Travel Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.