Correlation Between Svedbergs and Northbaze Group

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

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

Diversification Opportunities for Svedbergs and Northbaze Group

-0.65

Correlation Coefficient

Svedbergs  Northbaze Group

Excellent diversification

The 3 months correlation between Svedbergs and Northbaze is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Svedbergs i Dalstorp and Northbaze Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northbaze Group AB and Svedbergs 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 Svedbergs i Dalstorp are associated (or correlated) with Northbaze Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northbaze Group AB has no effect on the direction of Svedbergs i.e., Svedbergs and Northbaze Group go up and down completely randomly.

Pair Corralation between Svedbergs and Northbaze Group

Assuming the 90 days trading horizon Svedbergs is expected to generate 1.49 times less return on investment than Northbaze Group. But when comparing it to its historical volatility, Svedbergs i Dalstorp is 4.82 times less risky than Northbaze Group. It trades about 0.09 of its potential returns per unit of risk. Northbaze Group AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  42.00  in Northbaze Group AB on April 25, 2025 and sell it today you would lose (26.00) from holding Northbaze Group AB or give up 61.9% of portfolio value over 90 days.

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

Svedbergs i Dalstorp  vs.  Northbaze Group AB

Svedbergs i Dalstorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Svedbergs i Dalstorp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Svedbergs sustained solid returns over the last few months and may actually be approaching a breakup point.

Northbaze Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Northbaze Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Svedbergs and Northbaze Group

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

The idea behind Svedbergs i Dalstorp and Northbaze Group 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.