Correlation Between Beijer Ref and Concentric
Can any of the company-specific risk be diversified away by investing in both Beijer Ref and Concentric 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 Beijer Ref and Concentric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijer Ref AB and Concentric AB, you can compare the effects of market volatilities on Beijer Ref and Concentric 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 Beijer Ref with a short position of Concentric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijer Ref and Concentric.
Diversification Opportunities for Beijer Ref and Concentric
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijer and Concentric is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Beijer Ref AB and Concentric AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentric AB and Beijer Ref 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 Beijer Ref AB are associated (or correlated) with Concentric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentric AB has no effect on the direction of Beijer Ref i.e., Beijer Ref and Concentric go up and down completely randomly.
Pair Corralation between Beijer Ref and Concentric
Assuming the 90 days trading horizon Beijer Ref AB is expected to generate 5.64 times more return on investment than Concentric. However, Beijer Ref is 5.64 times more volatile than Concentric AB. It trades about 0.02 of its potential returns per unit of risk. Concentric AB is currently generating about 0.05 per unit of risk. If you would invest 16,190 in Beijer Ref AB on August 27, 2024 and sell it today you would earn a total of 55.00 from holding Beijer Ref AB or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Beijer Ref AB vs. Concentric AB
Performance |
| Timeline |
| Beijer Ref AB |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Beijer Ref and Concentric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijer Ref and Concentric
The main advantage of trading using opposite Beijer Ref and Concentric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijer Ref position performs unexpectedly, Concentric 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 Concentric will offset losses from the drop in Concentric's long position.| Beijer Ref vs. Lagercrantz Group AB | Beijer Ref vs. Addtech AB | Beijer Ref vs. AddLife AB | Beijer Ref vs. Bufab Holding AB |
| Concentric vs. Inwido AB | Concentric vs. Bufab Holding AB | Concentric vs. Beijer Alma AB | Concentric vs. Lindab International 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |