Correlation Between Bergman Beving and Rejlers AB
Can any of the company-specific risk be diversified away by investing in both Bergman Beving and Rejlers AB 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 Bergman Beving and Rejlers AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bergman Beving AB and Rejlers AB, you can compare the effects of market volatilities on Bergman Beving and Rejlers AB 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 Bergman Beving with a short position of Rejlers AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergman Beving and Rejlers AB.
Diversification Opportunities for Bergman Beving and Rejlers AB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bergman and Rejlers is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bergman Beving AB and Rejlers AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rejlers AB and Bergman Beving 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 Bergman Beving AB are associated (or correlated) with Rejlers AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rejlers AB has no effect on the direction of Bergman Beving i.e., Bergman Beving and Rejlers AB go up and down completely randomly.
Pair Corralation between Bergman Beving and Rejlers AB
Assuming the 90 days trading horizon Bergman Beving AB is expected to under-perform the Rejlers AB. In addition to that, Bergman Beving is 1.53 times more volatile than Rejlers AB. It trades about -0.35 of its total potential returns per unit of risk. Rejlers AB is currently generating about -0.21 per unit of volatility. If you would invest 14,980 in Rejlers AB on August 26, 2024 and sell it today you would lose (720.00) from holding Rejlers AB or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bergman Beving AB vs. Rejlers AB
Performance |
| Timeline |
| Bergman Beving AB |
| Rejlers AB |
Bergman Beving and Rejlers AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergman Beving and Rejlers AB
The main advantage of trading using opposite Bergman Beving and Rejlers AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergman Beving position performs unexpectedly, Rejlers AB 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 Rejlers AB will offset losses from the drop in Rejlers AB's long position.| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding AB |
| Rejlers AB vs. Proact IT Group | Rejlers AB vs. Nederman Holding AB | Rejlers AB vs. Sweco AB | Rejlers AB vs. Rottneros 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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