Correlation Between B3 Consulting and Aino Health
Can any of the company-specific risk be diversified away by investing in both B3 Consulting and Aino Health 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 Aino Health 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 Aino Health AB, you can compare the effects of market volatilities on B3 Consulting and Aino Health 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 Aino Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of B3 Consulting and Aino Health.
Diversification Opportunities for B3 Consulting and Aino Health
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between B3 Consulting and Aino is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding B3 Consulting Group and Aino Health AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aino Health AB 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 Aino Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aino Health AB has no effect on the direction of B3 Consulting i.e., B3 Consulting and Aino Health go up and down completely randomly.
Pair Corralation between B3 Consulting and Aino Health
Assuming the 90 days horizon B3 Consulting Group is expected to under-perform the Aino Health. But the stock apears to be less risky and, when comparing its historical volatility, B3 Consulting Group is 10.5 times less risky than Aino Health. The stock trades about -0.1 of its potential returns per unit of risk. The Aino Health AB is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Aino Health AB on October 26, 2024 and sell it today you would earn a total of 9.00 from holding Aino Health AB or generate 64.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B3 Consulting Group vs. Aino Health AB
Performance |
| Timeline |
| B3 Consulting Group |
| Aino Health AB |
B3 Consulting and Aino Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B3 Consulting and Aino Health
The main advantage of trading using opposite B3 Consulting and Aino Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B3 Consulting position performs unexpectedly, Aino Health 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 Aino Health will offset losses from the drop in Aino Health's long position.| B3 Consulting vs. Dedicare AB | B3 Consulting vs. Prevas AB | B3 Consulting vs. BE Group AB | B3 Consulting vs. Hexatronic Group AB |
| Aino Health vs. Greater Than AB | Aino Health vs. Diadrom Holding AB | Aino Health vs. Corline Biomedical AB | Aino Health vs. BIMobject 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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