Correlation Between Bonesupport Holding and Kollect On
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Kollect On 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 Bonesupport Holding and Kollect On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and Kollect on Demand, you can compare the effects of market volatilities on Bonesupport Holding and Kollect On 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 Bonesupport Holding with a short position of Kollect On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Kollect On.
Diversification Opportunities for Bonesupport Holding and Kollect On
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bonesupport and Kollect is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Kollect on Demand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kollect on Demand and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with Kollect On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kollect on Demand has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Kollect On go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Kollect On
Assuming the 90 days trading horizon Bonesupport Holding is expected to generate 1.7 times less return on investment than Kollect On. But when comparing it to its historical volatility, Bonesupport Holding AB is 1.92 times less risky than Kollect On. It trades about 0.13 of its potential returns per unit of risk. Kollect on Demand is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Kollect on Demand on October 13, 2024 and sell it today you would earn a total of 130.00 from holding Kollect on Demand or generate 92.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. Kollect on Demand
Performance |
| Timeline |
| Bonesupport Holding |
| Kollect on Demand |
Bonesupport Holding and Kollect On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and Kollect On
The main advantage of trading using opposite Bonesupport Holding and Kollect On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Kollect On 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 Kollect On will offset losses from the drop in Kollect On's long position.| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |