Correlation Between BE Group and Svedbergs
Can any of the company-specific risk be diversified away by investing in both BE Group and Svedbergs 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 BE Group and Svedbergs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BE Group AB and Svedbergs i Dalstorp, you can compare the effects of market volatilities on BE Group and Svedbergs 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 BE Group with a short position of Svedbergs. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Group and Svedbergs.
Diversification Opportunities for BE Group and Svedbergs
Very good diversification
The 3 months correlation between BEGR and Svedbergs is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BE Group AB and Svedbergs i Dalstorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svedbergs i Dalstorp and BE Group 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 BE Group AB are associated (or correlated) with Svedbergs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svedbergs i Dalstorp has no effect on the direction of BE Group i.e., BE Group and Svedbergs go up and down completely randomly.
Pair Corralation between BE Group and Svedbergs
Assuming the 90 days trading horizon BE Group AB is expected to under-perform the Svedbergs. But the stock apears to be less risky and, when comparing its historical volatility, BE Group AB is 1.83 times less risky than Svedbergs. The stock trades about -0.27 of its potential returns per unit of risk. The Svedbergs i Dalstorp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,301 in Svedbergs i Dalstorp on August 28, 2024 and sell it today you would lose (96.00) from holding Svedbergs i Dalstorp or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Group AB vs. Svedbergs i Dalstorp
Performance |
| Timeline |
| BE Group AB |
| Svedbergs i Dalstorp |
BE Group and Svedbergs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Group and Svedbergs
The main advantage of trading using opposite BE Group and Svedbergs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Group position performs unexpectedly, Svedbergs 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 Svedbergs will offset losses from the drop in Svedbergs' long position.| BE Group vs. Addtech AB | BE Group vs. Teqnion AB | BE Group vs. Vitec Software Group | BE Group vs. Lagercrantz Group AB |
| Svedbergs vs. Bufab Holding AB | Svedbergs vs. Garo AB | Svedbergs vs. Inwido AB | Svedbergs vs. CTT Systems 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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