Correlation Between Byggmax Group and Online Brands
Can any of the company-specific risk be diversified away by investing in both Byggmax Group and Online Brands 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 Byggmax Group and Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byggmax Group AB and Online Brands Nordic, you can compare the effects of market volatilities on Byggmax Group and Online Brands 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 Byggmax Group with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Online Brands.
Diversification Opportunities for Byggmax Group and Online Brands
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Byggmax and Online is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic and Byggmax 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 Byggmax Group AB are associated (or correlated) with Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of Byggmax Group i.e., Byggmax Group and Online Brands go up and down completely randomly.
Pair Corralation between Byggmax Group and Online Brands
Assuming the 90 days trading horizon Byggmax Group AB is expected to generate 0.51 times more return on investment than Online Brands. However, Byggmax Group AB is 1.94 times less risky than Online Brands. It trades about 0.08 of its potential returns per unit of risk. Online Brands Nordic is currently generating about 0.02 per unit of risk. If you would invest 2,883 in Byggmax Group AB on September 12, 2024 and sell it today you would earn a total of 1,991 from holding Byggmax Group AB or generate 69.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byggmax Group AB vs. Online Brands Nordic
Performance |
| Timeline |
| Byggmax Group AB |
| Online Brands Nordic |
Byggmax Group and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byggmax Group and Online Brands
The main advantage of trading using opposite Byggmax Group and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax Group position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| Byggmax Group vs. Clas Ohlson AB | Byggmax Group vs. Inwido AB | Byggmax Group vs. Cloetta AB | Byggmax Group vs. Betsson AB |
| Online Brands vs. Clas Ohlson AB | Online Brands vs. Bilia AB | Online Brands vs. Byggmax Group AB | Online Brands vs. Peab 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |