Correlation Between Avensia Publ and BIMobject
Can any of the company-specific risk be diversified away by investing in both Avensia Publ 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 Avensia Publ and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avensia publ AB and BIMobject AB, you can compare the effects of market volatilities on Avensia Publ 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 Avensia Publ with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avensia Publ and BIMobject.
Diversification Opportunities for Avensia Publ and BIMobject
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avensia and BIMobject is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Avensia publ AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Avensia Publ 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 Avensia publ AB 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 Avensia Publ i.e., Avensia Publ and BIMobject go up and down completely randomly.
Pair Corralation between Avensia Publ and BIMobject
Assuming the 90 days trading horizon Avensia publ AB is expected to under-perform the BIMobject. In addition to that, Avensia Publ is 1.05 times more volatile than BIMobject AB. It trades about -0.13 of its total potential returns per unit of risk. BIMobject AB is currently generating about -0.06 per unit of volatility. If you would invest 467.00 in BIMobject AB on August 29, 2024 and sell it today you would lose (12.00) from holding BIMobject AB or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avensia publ AB vs. BIMobject AB
Performance |
| Timeline |
| Avensia publ AB |
| BIMobject AB |
Avensia Publ and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avensia Publ and BIMobject
The main advantage of trading using opposite Avensia Publ and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avensia Publ 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.| Avensia Publ vs. Svedbergs i Dalstorp | Avensia Publ vs. Know IT AB | Avensia Publ vs. FormPipe Software AB |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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