Correlation Between BHG Group and New Bubbleroom
Can any of the company-specific risk be diversified away by investing in both BHG Group and New Bubbleroom 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 BHG Group and New Bubbleroom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BHG Group AB and New Bubbleroom Sweden, you can compare the effects of market volatilities on BHG Group and New Bubbleroom 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 BHG Group with a short position of New Bubbleroom. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHG Group and New Bubbleroom.
Diversification Opportunities for BHG Group and New Bubbleroom
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BHG and New is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BHG Group AB and New Bubbleroom Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Bubbleroom Sweden and BHG 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 BHG Group AB are associated (or correlated) with New Bubbleroom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Bubbleroom Sweden has no effect on the direction of BHG Group i.e., BHG Group and New Bubbleroom go up and down completely randomly.
Pair Corralation between BHG Group and New Bubbleroom
Assuming the 90 days trading horizon BHG Group AB is expected to generate 0.5 times more return on investment than New Bubbleroom. However, BHG Group AB is 2.0 times less risky than New Bubbleroom. It trades about -0.14 of its potential returns per unit of risk. New Bubbleroom Sweden is currently generating about -0.27 per unit of risk. If you would invest 1,943 in BHG Group AB on August 30, 2024 and sell it today you would lose (172.00) from holding BHG Group AB or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BHG Group AB vs. New Bubbleroom Sweden
Performance |
| Timeline |
| BHG Group AB |
| New Bubbleroom Sweden |
BHG Group and New Bubbleroom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BHG Group and New Bubbleroom
The main advantage of trading using opposite BHG Group and New Bubbleroom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHG Group position performs unexpectedly, New Bubbleroom 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 New Bubbleroom will offset losses from the drop in New Bubbleroom's long position.| BHG Group vs. Sinch AB | BHG Group vs. Byggmax Group AB | BHG Group vs. Stillfront Group AB | BHG Group vs. Boozt AB |
| New Bubbleroom vs. Footway Group AB | New Bubbleroom vs. Kjell Group AB | New Bubbleroom vs. Bokusgruppen AB | New Bubbleroom vs. Desenio Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |