Correlation Between SaveLend Group and Lea Bank

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

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

Diversification Opportunities for SaveLend Group and Lea Bank

0.01

Correlation Coefficient

SaveLend Group  Lea Bank

Significant diversification

The 3 months correlation between SaveLend and Lea is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Lea Bank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lea Bank AB and SaveLend Group 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 SaveLend Group AB are associated (or correlated) with Lea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lea Bank AB has no effect on the direction of SaveLend Group i.e., SaveLend Group and Lea Bank go up and down completely randomly.

Pair Corralation between SaveLend Group and Lea Bank

Assuming the 90 days trading horizon SaveLend Group AB is expected to generate 1.11 times more return on investment than Lea Bank. However, SaveLend Group is 1.11 times more volatile than Lea Bank AB. It trades about 0.05 of its potential returns per unit of risk. Lea Bank AB is currently generating about 0.0 per unit of risk. If you would invest  161.00  in SaveLend Group AB on April 23, 2025 and sell it today you would earn a total of  11.00  from holding SaveLend Group AB or generate 6.83% return on investment over 90 days.

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

SaveLend Group AB  vs.  Lea Bank AB

SaveLend Group AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SaveLend Group AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, SaveLend Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Lea Bank AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lea Bank AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lea Bank is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SaveLend Group and Lea Bank

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

The idea behind SaveLend Group AB and Lea Bank 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.