Correlation Between BIMobject and Greater Than
Can any of the company-specific risk be diversified away by investing in both BIMobject and Greater Than 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 Greater Than into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIMobject AB and Greater Than AB, you can compare the effects of market volatilities on BIMobject and Greater Than 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 Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIMobject and Greater Than.
Diversification Opportunities for BIMobject and Greater Than
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between BIMobject and Greater is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than 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 Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of BIMobject i.e., BIMobject and Greater Than go up and down completely randomly.
Pair Corralation between BIMobject and Greater Than
Assuming the 90 days trading horizon BIMobject AB is expected to generate 0.27 times more return on investment than Greater Than. However, BIMobject AB is 3.69 times less risky than Greater Than. It trades about 0.11 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.08 per unit of risk. If you would invest 405.00 in BIMobject AB on August 29, 2024 and sell it today you would earn a total of 50.00 from holding BIMobject AB or generate 12.35% 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. Greater Than AB
Performance |
| Timeline |
| BIMobject AB |
| Greater Than AB |
BIMobject and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIMobject and Greater Than
The main advantage of trading using opposite BIMobject and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIMobject position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish AB |
| Greater Than vs. Spectrumone publ AB | Greater Than vs. Media and Games | Greater Than vs. Enersize Oy | Greater Than vs. Cantargia 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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