Correlation Between Byggmax Group and Tellusgruppen
Can any of the company-specific risk be diversified away by investing in both Byggmax Group and Tellusgruppen 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 Tellusgruppen 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 Tellusgruppen AB, you can compare the effects of market volatilities on Byggmax Group and Tellusgruppen 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 Tellusgruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Tellusgruppen.
Diversification Opportunities for Byggmax Group and Tellusgruppen
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Byggmax and Tellusgruppen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Tellusgruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellusgruppen AB 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 Tellusgruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellusgruppen AB has no effect on the direction of Byggmax Group i.e., Byggmax Group and Tellusgruppen go up and down completely randomly.
Pair Corralation between Byggmax Group and Tellusgruppen
Assuming the 90 days trading horizon Byggmax Group AB is expected to generate 0.94 times more return on investment than Tellusgruppen. However, Byggmax Group AB is 1.06 times less risky than Tellusgruppen. It trades about 0.01 of its potential returns per unit of risk. Tellusgruppen AB is currently generating about 0.0 per unit of risk. If you would invest 4,565 in Byggmax Group AB on September 2, 2024 and sell it today you would lose (169.00) from holding Byggmax Group AB or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byggmax Group AB vs. Tellusgruppen AB
Performance |
| Timeline |
| Byggmax Group AB |
| Tellusgruppen AB |
Byggmax Group and Tellusgruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byggmax Group and Tellusgruppen
The main advantage of trading using opposite Byggmax Group and Tellusgruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax Group position performs unexpectedly, Tellusgruppen 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 Tellusgruppen will offset losses from the drop in Tellusgruppen's long position.| Byggmax Group vs. NetJobs Group AB | Byggmax Group vs. Mantex AB | Byggmax Group vs. Doxa AB | Byggmax Group vs. Clean Motion AB |
| Tellusgruppen vs. Image Systems AB | Tellusgruppen vs. Garo AB | Tellusgruppen vs. SECITS Holding AB | Tellusgruppen vs. Ayima Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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