Correlation Between BIMobject and Unibap AB
Can any of the company-specific risk be diversified away by investing in both BIMobject and Unibap AB 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 Unibap AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIMobject AB and Unibap AB, you can compare the effects of market volatilities on BIMobject and Unibap AB 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 Unibap AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIMobject and Unibap AB.
Diversification Opportunities for BIMobject and Unibap AB
Average diversification
The 3 months correlation between BIMobject and Unibap is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Unibap AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibap 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 Unibap AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibap AB has no effect on the direction of BIMobject i.e., BIMobject and Unibap AB go up and down completely randomly.
Pair Corralation between BIMobject and Unibap AB
Assuming the 90 days trading horizon BIMobject AB is expected to generate 1.38 times more return on investment than Unibap AB. However, BIMobject is 1.38 times more volatile than Unibap AB. It trades about 0.32 of its potential returns per unit of risk. Unibap AB is currently generating about 0.06 per unit of risk. If you would invest 448.00 in BIMobject AB on October 26, 2024 and sell it today you would earn a total of 100.00 from holding BIMobject AB or generate 22.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
BIMobject AB vs. Unibap AB
Performance |
| Timeline |
| BIMobject AB |
| Unibap AB |
BIMobject and Unibap AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIMobject and Unibap AB
The main advantage of trading using opposite BIMobject and Unibap AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIMobject position performs unexpectedly, Unibap AB 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 Unibap AB will offset losses from the drop in Unibap AB's long position.| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish AB |
| Unibap AB vs. Acconeer AB | Unibap AB vs. BIMobject AB | Unibap AB vs. Gapwaves AB Series | Unibap AB vs. Sedana Medical 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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