Correlation Between Alimak Hek and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and Byggmax 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 Alimak Hek and Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimak Hek Group and Byggmax Group AB, you can compare the effects of market volatilities on Alimak Hek and Byggmax 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 Alimak Hek with a short position of Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and Byggmax Group.
Diversification Opportunities for Alimak Hek and Byggmax Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alimak and Byggmax is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB and Alimak Hek 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 Alimak Hek Group are associated (or correlated) with Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Alimak Hek i.e., Alimak Hek and Byggmax Group go up and down completely randomly.
Pair Corralation between Alimak Hek and Byggmax Group
Assuming the 90 days trading horizon Alimak Hek is expected to generate 2.13 times less return on investment than Byggmax Group. But when comparing it to its historical volatility, Alimak Hek Group is 1.58 times less risky than Byggmax Group. It trades about 0.03 of its potential returns per unit of risk. Byggmax Group AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,022 in Byggmax Group AB on September 1, 2024 and sell it today you would earn a total of 374.00 from holding Byggmax Group AB or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Alimak Hek Group vs. Byggmax Group AB
Performance |
| Timeline |
| Alimak Hek Group |
| Byggmax Group AB |
Alimak Hek and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and Byggmax Group
The main advantage of trading using opposite Alimak Hek and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, Byggmax 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Alimak Hek vs. Samhllsbyggnadsbolaget i Norden | Alimak Hek vs. Sinch AB | Alimak Hek vs. Embracer Group AB | Alimak Hek vs. Evolution AB |
| Byggmax Group vs. NetJobs Group AB | Byggmax Group vs. Mantex AB | Byggmax Group vs. Doxa AB | Byggmax Group vs. Clean Motion 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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