Correlation Between Svenska Aerogel and BIMobject
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and BIMobject 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 Svenska Aerogel and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Aerogel Holding and BIMobject AB, you can compare the effects of market volatilities on Svenska Aerogel and BIMobject 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 Svenska Aerogel with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and BIMobject.
Diversification Opportunities for Svenska Aerogel and BIMobject
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Svenska and BIMobject is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Svenska Aerogel 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 Svenska Aerogel Holding are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and BIMobject go up and down completely randomly.
Pair Corralation between Svenska Aerogel and BIMobject
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to generate 6.49 times more return on investment than BIMobject. However, Svenska Aerogel is 6.49 times more volatile than BIMobject AB. It trades about 0.02 of its potential returns per unit of risk. BIMobject AB is currently generating about 0.03 per unit of risk. If you would invest 1,080 in Svenska Aerogel Holding on September 1, 2024 and sell it today you would lose (70.00) from holding Svenska Aerogel Holding or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. BIMobject AB
Performance |
| Timeline |
| Svenska Aerogel Holding |
| BIMobject AB |
Svenska Aerogel and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and BIMobject
The main advantage of trading using opposite Svenska Aerogel and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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