Correlation Between 4C Group and Kjell Group
Can any of the company-specific risk be diversified away by investing in both 4C Group and Kjell 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 4C Group and Kjell Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4C Group AB and Kjell Group AB, you can compare the effects of market volatilities on 4C Group and Kjell 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 4C Group with a short position of Kjell Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4C Group and Kjell Group.
Diversification Opportunities for 4C Group and Kjell Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 4C Group and Kjell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 4C Group AB and Kjell Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kjell Group AB and 4C 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 4C Group AB are associated (or correlated) with Kjell Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kjell Group AB has no effect on the direction of 4C Group i.e., 4C Group and Kjell Group go up and down completely randomly.
Pair Corralation between 4C Group and Kjell Group
If you would invest 0.00 in 4C Group AB on October 27, 2024 and sell it today you would earn a total of 0.00 from holding 4C Group AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
4C Group AB vs. Kjell Group AB
Performance |
| Timeline |
| 4C Group AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kjell Group AB |
4C Group and Kjell Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4C Group and Kjell Group
The main advantage of trading using opposite 4C Group and Kjell Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4C Group position performs unexpectedly, Kjell 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 Kjell Group will offset losses from the drop in Kjell Group's long position.| 4C Group vs. B3 Consulting Group | 4C Group vs. Sleep Cycle AB | 4C Group vs. Avensia publ AB | 4C Group vs. CAG Group AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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