Correlation Between AutoStore Holdings and Byggma
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Byggma 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 AutoStore Holdings and Byggma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Byggma, you can compare the effects of market volatilities on AutoStore Holdings and Byggma 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 AutoStore Holdings with a short position of Byggma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Byggma.
Diversification Opportunities for AutoStore Holdings and Byggma
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AutoStore and Byggma is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Byggma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggma and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Byggma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggma has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Byggma go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Byggma
Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 1.25 times less return on investment than Byggma. In addition to that, AutoStore Holdings is 1.22 times more volatile than Byggma. It trades about 0.12 of its total potential returns per unit of risk. Byggma is currently generating about 0.18 per unit of volatility. If you would invest 1,600 in Byggma on November 27, 2024 and sell it today you would earn a total of 150.00 from holding Byggma or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Byggma
Performance |
| Timeline |
| AutoStore Holdings |
| Byggma |
AutoStore Holdings and Byggma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Byggma
The main advantage of trading using opposite AutoStore Holdings and Byggma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Byggma 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 Byggma will offset losses from the drop in Byggma's long position.| AutoStore Holdings vs. Nordic Semiconductor ASA | AutoStore Holdings vs. Aker BP ASA | AutoStore Holdings vs. SalMar ASA | AutoStore Holdings vs. Scatec Solar OL |
| Byggma vs. AF Gruppen ASA | Byggma vs. American Shipping | Byggma vs. Arendals Fossekompani ASA | Byggma vs. Kid ASA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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