Correlation Between Bonava AB and Attendo AB
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By analyzing existing cross correlation between Bonava AB and Attendo AB, you can compare the effects of market volatilities on Bonava AB and Attendo 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 Bonava AB with a short position of Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonava AB and Attendo AB.
Diversification Opportunities for Bonava AB and Attendo AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonava and Attendo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bonava AB and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB 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 Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Bonava AB i.e., Bonava AB and Attendo AB go up and down completely randomly.
Pair Corralation between Bonava AB and Attendo AB
Assuming the 90 days trading horizon Bonava AB is expected to under-perform the Attendo AB. In addition to that, Bonava AB is 3.05 times more volatile than Attendo AB. It trades about -0.25 of its total potential returns per unit of risk. Attendo AB is currently generating about 0.07 per unit of volatility. If you would invest 4,820 in Attendo AB on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Attendo AB or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonava AB vs. Attendo AB
Performance |
| Timeline |
| Bonava AB |
| Attendo AB |
Bonava AB and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonava AB and Attendo AB
The main advantage of trading using opposite Bonava AB and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonava AB position performs unexpectedly, Attendo 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 Attendo AB will offset losses from the drop in Attendo AB's long position.The idea behind Bonava AB and Attendo 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.| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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