Correlation Between Bonava AB and KABE Group
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By analyzing existing cross correlation between Bonava AB and KABE Group AB, you can compare the effects of market volatilities on Bonava AB and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonava AB and KABE Group.
Diversification Opportunities for Bonava AB and KABE Group
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonava and KABE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bonava AB and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Bonava AB i.e., Bonava AB and KABE Group go up and down completely randomly.
Pair Corralation between Bonava AB and KABE Group
Assuming the 90 days trading horizon Bonava AB is expected to under-perform the KABE Group. In addition to that, Bonava AB is 2.01 times more volatile than KABE Group AB. It trades about -0.04 of its total potential returns per unit of risk. KABE Group AB is currently generating about 0.06 per unit of volatility. If you would invest 19,371 in KABE Group AB on August 29, 2024 and sell it today you would earn a total of 10,829 from holding KABE Group AB or generate 55.9% 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. KABE Group AB
Performance |
| Timeline |
| Bonava AB |
| KABE Group AB |
Bonava AB and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonava AB and KABE Group
The main advantage of trading using opposite Bonava AB and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonava AB position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group's long position.The idea behind Bonava AB and KABE Group 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.| KABE Group vs. Awardit AB | KABE Group vs. RVRC Holding AB | KABE Group vs. Smart Eye AB | KABE Group vs. IAR Systems Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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