Correlation Between BBS Bioactive and SSAB AB
Can any of the company-specific risk be diversified away by investing in both BBS Bioactive and SSAB AB 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 BBS Bioactive and SSAB AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBS Bioactive Bone Substitutes and SSAB AB ser, you can compare the effects of market volatilities on BBS Bioactive and SSAB 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 BBS Bioactive with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBS Bioactive and SSAB AB.
Diversification Opportunities for BBS Bioactive and SSAB AB
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBS and SSAB is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BBS Bioactive Bone Substitutes and SSAB AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB ser and BBS Bioactive 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 BBS Bioactive Bone Substitutes are associated (or correlated) with SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB ser has no effect on the direction of BBS Bioactive i.e., BBS Bioactive and SSAB AB go up and down completely randomly.
Pair Corralation between BBS Bioactive and SSAB AB
Assuming the 90 days trading horizon BBS Bioactive Bone Substitutes is expected to under-perform the SSAB AB. In addition to that, BBS Bioactive is 5.92 times more volatile than SSAB AB ser. It trades about -0.27 of its total potential returns per unit of risk. SSAB AB ser is currently generating about -0.04 per unit of volatility. If you would invest 451.00 in SSAB AB ser on August 30, 2024 and sell it today you would lose (13.00) from holding SSAB AB ser or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BBS Bioactive Bone Substitutes vs. SSAB AB ser
Performance |
| Timeline |
| BBS Bioactive Bone |
| SSAB AB ser |
BBS Bioactive and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBS Bioactive and SSAB AB
The main advantage of trading using opposite BBS Bioactive and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBS Bioactive position performs unexpectedly, SSAB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.| BBS Bioactive vs. Nexstim Oyj | BBS Bioactive vs. Nightingale Health Oyj | BBS Bioactive vs. Kamux Suomi Oy | BBS Bioactive vs. Spinnova Oy |
| SSAB AB vs. SSAB AB ser | SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Metsa Board Oyj | SSAB AB vs. Telia Company 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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