Correlation Between BIMobject and FlexQube
Can any of the company-specific risk be diversified away by investing in both BIMobject and FlexQube 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 FlexQube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIMobject AB and FlexQube AB, you can compare the effects of market volatilities on BIMobject and FlexQube 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 FlexQube. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIMobject and FlexQube.
Diversification Opportunities for BIMobject and FlexQube
Average diversification
The 3 months correlation between BIMobject and FlexQube is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and FlexQube AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexQube AB 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 FlexQube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexQube AB has no effect on the direction of BIMobject i.e., BIMobject and FlexQube go up and down completely randomly.
Pair Corralation between BIMobject and FlexQube
Assuming the 90 days trading horizon BIMobject AB is expected to generate 0.69 times more return on investment than FlexQube. However, BIMobject AB is 1.46 times less risky than FlexQube. It trades about 0.07 of its potential returns per unit of risk. FlexQube AB is currently generating about 0.0 per unit of risk. If you would invest 395.00 in BIMobject AB on November 3, 2024 and sell it today you would earn a total of 173.00 from holding BIMobject AB or generate 43.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIMobject AB vs. FlexQube AB
Performance |
| Timeline |
| BIMobject AB |
| FlexQube AB |
BIMobject and FlexQube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIMobject and FlexQube
The main advantage of trading using opposite BIMobject and FlexQube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIMobject position performs unexpectedly, FlexQube 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 FlexQube will offset losses from the drop in FlexQube's long position.The idea behind BIMobject AB and FlexQube AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FlexQube vs. Generic Sweden publ | FlexQube vs. Firefly AB | FlexQube vs. Awardit AB | FlexQube vs. BIMobject 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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