Correlation Between BIMobject and Clavister Holding
Can any of the company-specific risk be diversified away by investing in both BIMobject and Clavister Holding 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 BIMobject and Clavister Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIMobject AB and Clavister Holding AB, you can compare the effects of market volatilities on BIMobject and Clavister Holding 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 BIMobject with a short position of Clavister Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIMobject and Clavister Holding.
Diversification Opportunities for BIMobject and Clavister Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIMobject and Clavister is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Clavister Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clavister Holding and BIMobject 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 BIMobject AB are associated (or correlated) with Clavister Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clavister Holding has no effect on the direction of BIMobject i.e., BIMobject and Clavister Holding go up and down completely randomly.
Pair Corralation between BIMobject and Clavister Holding
Assuming the 90 days trading horizon BIMobject AB is expected to under-perform the Clavister Holding. But the stock apears to be less risky and, when comparing its historical volatility, BIMobject AB is 2.92 times less risky than Clavister Holding. The stock trades about -0.06 of its potential returns per unit of risk. The Clavister Holding AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Clavister Holding AB on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Clavister Holding AB or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIMobject AB vs. Clavister Holding AB
Performance |
| Timeline |
| BIMobject AB |
| Clavister Holding |
BIMobject and Clavister Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIMobject and Clavister Holding
The main advantage of trading using opposite BIMobject and Clavister Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIMobject position performs unexpectedly, Clavister Holding 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 Clavister Holding will offset losses from the drop in Clavister Holding's long position.| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish AB |
| Clavister Holding vs. Lifco AB | Clavister Holding vs. Lagercrantz Group AB | Clavister Holding vs. Addtech AB | Clavister Holding vs. Instalco Intressenter 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |