Correlation Between Bonava AB and Atrium Ljungberg
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By analyzing existing cross correlation between Bonava AB and Atrium Ljungberg AB, you can compare the effects of market volatilities on Bonava AB and Atrium Ljungberg 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 Bonava AB with a short position of Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonava AB and Atrium Ljungberg.
Diversification Opportunities for Bonava AB and Atrium Ljungberg
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bonava and Atrium is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bonava AB and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg and Bonava 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 Bonava AB are associated (or correlated) with Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of Bonava AB i.e., Bonava AB and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between Bonava AB and Atrium Ljungberg
Assuming the 90 days trading horizon Bonava AB is expected to generate 1.44 times more return on investment than Atrium Ljungberg. However, Bonava AB is 1.44 times more volatile than Atrium Ljungberg AB. It trades about 0.38 of its potential returns per unit of risk. Atrium Ljungberg AB is currently generating about -0.21 per unit of risk. If you would invest 860.00 in Bonava AB on November 28, 2024 and sell it today you would earn a total of 247.00 from holding Bonava AB or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bonava AB vs. Atrium Ljungberg AB
Performance |
| Timeline |
| Bonava AB |
| Atrium Ljungberg |
Bonava AB and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonava AB and Atrium Ljungberg
The main advantage of trading using opposite Bonava AB and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonava AB position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.The idea behind Bonava AB and Atrium Ljungberg AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Atrium Ljungberg vs. Hufvudstaden AB | Atrium Ljungberg vs. Fabege AB | Atrium Ljungberg vs. Wihlborgs Fastigheter AB | Atrium Ljungberg vs. Fastighets AB Balder |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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