Correlation Between Boliden AB and United Tractors
Can any of the company-specific risk be diversified away by investing in both Boliden AB and United Tractors 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 Boliden AB and United Tractors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boliden AB and United Tractors Tbk, you can compare the effects of market volatilities on Boliden AB and United Tractors 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 Boliden AB with a short position of United Tractors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boliden AB and United Tractors.
Diversification Opportunities for Boliden AB and United Tractors
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boliden and United is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Boliden AB and United Tractors Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Tractors Tbk and Boliden AB 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 Boliden AB are associated (or correlated) with United Tractors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Tractors Tbk has no effect on the direction of Boliden AB i.e., Boliden AB and United Tractors go up and down completely randomly.
Pair Corralation between Boliden AB and United Tractors
If you would invest 3,465 in Boliden AB on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Boliden AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Boliden AB vs. United Tractors Tbk
Performance |
| Timeline |
| Boliden AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Tractors Tbk |
Boliden AB and United Tractors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boliden AB and United Tractors
The main advantage of trading using opposite Boliden AB and United Tractors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boliden AB position performs unexpectedly, United Tractors 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 United Tractors will offset losses from the drop in United Tractors' long position.| Boliden AB vs. Avarone Metals | Boliden AB vs. Aurelia Metals Limited | Boliden AB vs. Adriatic Metals PLC | Boliden AB vs. Huntsman Exploration |
| United Tractors vs. Australian Strategic Materials | United Tractors vs. Iluka Resources Ltd | United Tractors vs. Boliden AB ADR | United Tractors vs. Eramet SA ADR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |