Correlation Between Bonava AB and Mekonomen
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By analyzing existing cross correlation between Bonava AB and Mekonomen AB, you can compare the effects of market volatilities on Bonava AB and Mekonomen 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 Mekonomen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonava AB and Mekonomen.
Diversification Opportunities for Bonava AB and Mekonomen
Poor diversification
The 3 months correlation between Bonava and Mekonomen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bonava AB and Mekonomen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekonomen 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 Mekonomen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekonomen AB has no effect on the direction of Bonava AB i.e., Bonava AB and Mekonomen go up and down completely randomly.
Pair Corralation between Bonava AB and Mekonomen
Assuming the 90 days trading horizon Bonava AB is expected to under-perform the Mekonomen. In addition to that, Bonava AB is 1.86 times more volatile than Mekonomen AB. It trades about -0.27 of its total potential returns per unit of risk. Mekonomen AB is currently generating about -0.16 per unit of volatility. If you would invest 14,145 in Mekonomen AB on September 1, 2024 and sell it today you would lose (825.00) from holding Mekonomen AB or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonava AB vs. Mekonomen AB
Performance |
| Timeline |
| Bonava AB |
| Mekonomen AB |
Bonava AB and Mekonomen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonava AB and Mekonomen
The main advantage of trading using opposite Bonava AB and Mekonomen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonava AB position performs unexpectedly, Mekonomen 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 Mekonomen will offset losses from the drop in Mekonomen's long position.The idea behind Bonava AB and Mekonomen 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.| Mekonomen vs. NetJobs Group AB | Mekonomen vs. Mantex AB | Mekonomen vs. Doxa AB | Mekonomen vs. Clean Motion 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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