Correlation Between B3 Consulting and Svenska Aerogel
Can any of the company-specific risk be diversified away by investing in both B3 Consulting and Svenska Aerogel 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 B3 Consulting and Svenska Aerogel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B3 Consulting Group and Svenska Aerogel Holding, you can compare the effects of market volatilities on B3 Consulting and Svenska Aerogel 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 B3 Consulting with a short position of Svenska Aerogel. Check out your portfolio center. Please also check ongoing floating volatility patterns of B3 Consulting and Svenska Aerogel.
Diversification Opportunities for B3 Consulting and Svenska Aerogel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between B3 Consulting and Svenska is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding B3 Consulting Group and Svenska Aerogel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svenska Aerogel Holding and B3 Consulting 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 B3 Consulting Group are associated (or correlated) with Svenska Aerogel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svenska Aerogel Holding has no effect on the direction of B3 Consulting i.e., B3 Consulting and Svenska Aerogel go up and down completely randomly.
Pair Corralation between B3 Consulting and Svenska Aerogel
Assuming the 90 days horizon B3 Consulting Group is expected to generate 0.47 times more return on investment than Svenska Aerogel. However, B3 Consulting Group is 2.14 times less risky than Svenska Aerogel. It trades about -0.01 of its potential returns per unit of risk. Svenska Aerogel Holding is currently generating about -0.02 per unit of risk. If you would invest 8,806 in B3 Consulting Group on September 12, 2024 and sell it today you would lose (1,326) from holding B3 Consulting Group or give up 15.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B3 Consulting Group vs. Svenska Aerogel Holding
Performance |
| Timeline |
| B3 Consulting Group |
| Svenska Aerogel Holding |
B3 Consulting and Svenska Aerogel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B3 Consulting and Svenska Aerogel
The main advantage of trading using opposite B3 Consulting and Svenska Aerogel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B3 Consulting position performs unexpectedly, Svenska Aerogel 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 Svenska Aerogel will offset losses from the drop in Svenska Aerogel's long position.| B3 Consulting vs. Svenska Aerogel Holding | B3 Consulting vs. Acarix AS | B3 Consulting vs. Clean Motion AB | B3 Consulting vs. Episurf Medical AB |
| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. KABE Group AB | Svenska Aerogel vs. IAR Systems Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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