Correlation Between BHG Group and Millicom International
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By analyzing existing cross correlation between BHG Group AB and Millicom International Cellular, you can compare the effects of market volatilities on BHG Group and Millicom International 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 Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHG Group and Millicom International.
Diversification Opportunities for BHG Group and Millicom International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BHG and Millicom is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding BHG Group AB and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International 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 Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of BHG Group i.e., BHG Group and Millicom International go up and down completely randomly.
Pair Corralation between BHG Group and Millicom International
Assuming the 90 days trading horizon BHG Group AB is expected to under-perform the Millicom International. In addition to that, BHG Group is 1.48 times more volatile than Millicom International Cellular. It trades about -0.25 of its total potential returns per unit of risk. Millicom International Cellular is currently generating about -0.1 per unit of volatility. If you would invest 29,580 in Millicom International Cellular on August 29, 2024 and sell it today you would lose (1,100) from holding Millicom International Cellular or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BHG Group AB vs. Millicom International Cellula
Performance |
| Timeline |
| BHG Group AB |
| Millicom International |
BHG Group and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BHG Group and Millicom International
The main advantage of trading using opposite BHG Group and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHG Group position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International'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 |
| Millicom International vs. Lidds AB | Millicom International vs. Serstech AB | Millicom International vs. Transtema Group AB | Millicom International vs. Enorama Pharma 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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