Correlation Between Atlas Copco and Beowulf Mining
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By analyzing existing cross correlation between Atlas Copco AB and Beowulf Mining PLC, you can compare the effects of market volatilities on Atlas Copco and Beowulf Mining 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 Atlas Copco with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Copco and Beowulf Mining.
Diversification Opportunities for Atlas Copco and Beowulf Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and Beowulf is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Copco AB and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC and Atlas Copco 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 Atlas Copco AB are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of Atlas Copco i.e., Atlas Copco and Beowulf Mining go up and down completely randomly.
Pair Corralation between Atlas Copco and Beowulf Mining
Assuming the 90 days trading horizon Atlas Copco AB is expected to generate 0.31 times more return on investment than Beowulf Mining. However, Atlas Copco AB is 3.27 times less risky than Beowulf Mining. It trades about -0.1 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about -0.21 per unit of risk. If you would invest 15,725 in Atlas Copco AB on August 31, 2024 and sell it today you would lose (510.00) from holding Atlas Copco AB or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atlas Copco AB vs. Beowulf Mining PLC
Performance |
| Timeline |
| Atlas Copco AB |
| Beowulf Mining PLC |
Atlas Copco and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Copco and Beowulf Mining
The main advantage of trading using opposite Atlas Copco and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Copco position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Atlas Copco vs. AB SKF | Atlas Copco vs. Sandvik AB | Atlas Copco vs. Husqvarna AB | Atlas Copco vs. Skanska AB |
| Beowulf Mining vs. AstraZeneca PLC | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Atlas Copco 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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