Correlation Between Seraphim Space and Kinnevik Investment

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

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

Diversification Opportunities for Seraphim Space and Kinnevik Investment

0.63

Correlation Coefficient

Seraphim Space  Kinnevik Investment

Poor diversification

The 3 months correlation between Seraphim and Kinnevik is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Seraphim Space 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 Seraphim Space Investment are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Seraphim Space i.e., Seraphim Space and Kinnevik Investment go up and down completely randomly.

Pair Corralation between Seraphim Space and Kinnevik Investment

Assuming the 90 days trading horizon Seraphim Space is expected to generate 4.3 times less return on investment than Kinnevik Investment. But when comparing it to its historical volatility, Seraphim Space Investment is 6.89 times less risky than Kinnevik Investment. It trades about 0.07 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  8,695  in Kinnevik Investment AB on April 4, 2025 and sell it today you would lose (355.00) from holding Kinnevik Investment AB or give up 4.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.82%
Values	Daily Returns

Seraphim Space Investment  vs.  Kinnevik Investment AB

Seraphim Space Investment

Risk-Adjusted Performance

Solid

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

Kinnevik Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinnevik Investment AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Kinnevik Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Seraphim Space and Kinnevik Investment

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

The idea behind Seraphim Space Investment and Kinnevik Investment 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.