Correlation Between Beijer Ref and Storskogen Group
Can any of the company-specific risk be diversified away by investing in both Beijer Ref and Storskogen Group 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 Storskogen Group 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 Storskogen Group AB, you can compare the effects of market volatilities on Beijer Ref and Storskogen Group 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 Storskogen Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijer Ref and Storskogen Group.
Diversification Opportunities for Beijer Ref and Storskogen Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijer and Storskogen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijer Ref AB and Storskogen Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storskogen Group 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 Storskogen Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storskogen Group has no effect on the direction of Beijer Ref i.e., Beijer Ref and Storskogen Group go up and down completely randomly.
Pair Corralation between Beijer Ref and Storskogen Group
Assuming the 90 days trading horizon Beijer Ref is expected to generate 393.67 times less return on investment than Storskogen Group. But when comparing it to its historical volatility, Beijer Ref AB is 2.16 times less risky than Storskogen Group. It trades about 0.0 of its potential returns per unit of risk. Storskogen Group AB is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 879.00 in Storskogen Group AB on September 3, 2024 and sell it today you would earn a total of 249.00 from holding Storskogen Group AB or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijer Ref AB vs. Storskogen Group AB
Performance |
| Timeline |
| Beijer Ref AB |
| Storskogen Group |
Beijer Ref and Storskogen Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijer Ref and Storskogen Group
The main advantage of trading using opposite Beijer Ref and Storskogen Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijer Ref position performs unexpectedly, Storskogen Group 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 Storskogen Group will offset losses from the drop in Storskogen Group's long position.| Beijer Ref vs. Addtech AB | Beijer Ref vs. Indutrade AB | Beijer Ref vs. Lifco AB | Beijer Ref vs. NIBE Industrier AB |
| Storskogen Group vs. L E Lundbergfretagen | Storskogen Group vs. Industrivarden AB ser | Storskogen Group vs. Svenska Handelsbanken AB | Storskogen Group vs. Investment AB Latour |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |