Correlation Between Soder Sportfiske and Xintela AB

Can any of the company-specific risk be diversified away by investing in both Soder Sportfiske and Xintela AB 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 Xintela AB 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 Xintela AB, you can compare the effects of market volatilities on Soder Sportfiske and Xintela AB 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 Xintela AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soder Sportfiske and Xintela AB.

Diversification Opportunities for Soder Sportfiske and Xintela AB

0.28

Correlation Coefficient

Soder Sportfiske  Xintela AB

Modest diversification

The 3 months correlation between Soder and Xintela is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Soder Sportfiske AB and Xintela AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintela AB 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 Xintela AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintela AB has no effect on the direction of Soder Sportfiske i.e., Soder Sportfiske and Xintela AB go up and down completely randomly.

Pair Corralation between Soder Sportfiske and Xintela AB

Assuming the 90 days trading horizon Soder Sportfiske is expected to generate 1.22 times less return on investment than Xintela AB. But when comparing it to its historical volatility, Soder Sportfiske AB is 2.28 times less risky than Xintela AB. It trades about 0.12 of its potential returns per unit of risk. Xintela AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Xintela AB on April 23, 2025 and sell it today you would earn a total of  5.00  from holding Xintela AB or generate 14.29% return on investment over 90 days.

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

Soder Sportfiske AB  vs.  Xintela AB

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 9 (%) 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.

Xintela AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xintela AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Xintela AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Soder Sportfiske and Xintela AB

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

The idea behind Soder Sportfiske AB and Xintela 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.